The USD/CAD pair was closed at 1.30853 after placing a high of 1.31123 and a low of 1.30452. The USD/CAD pair remained flat during the Monday trading session as the strength of the US dollar kept the pair on the upside while the strength of the Canadian dollar dragged the pair on the lower side simultaneously, which resulted in a flat movement.
The rise in the USD/CAD pair was due to the better-than-expected macroeconomic data on Monday. At 19:45 GMT, the Flash Manufacturing PMI from the US in November raised to 56.7 against the forecasted 52.5, supported the US dollar, and pushed the USD/CAD pair higher. The Flash Services PMI surged to 57.7 against the anticipated 55.8 and kept the US dollar and added gains in the USD/CAD pair.
However, the USD/CAD pair’s gains could not live longer as the improved risk sentiment in the market continuously supported the riskier Canadian dollar. The latest news from AstraZeneca, a British pharmaceutical, said that its vaccine effectively prevented coronavirus. AstraZeneca’s first dosage of vaccine could provide 70% immunity from the virus, whereas the second dosage could provide 90% immunity.
The rising optimism after the vaccine developers’ positive reports gave strength to risk perceived Canadian dollar that added weight on the USD/CAD pair on Monday. Meanwhile, the WTI Crude Oil prices also weighed on the USD/CAD pair after the prices of crude oil rose above the $43 level on Monday amid the rising optimism in the market that, with the progress in vaccine development, the chances for lifting the lockdown restrictions increased that would raise the demand for crude oil.
The rising crude oil prices helped the commodity-sensitive Canadian dollar gather strength against its rival currencies supported by the optimism that coronavirus vaccines will lead to a steady recovery in energy demand. The strong Loonie weighed on the USD/CAD pair, and the pair lost all of its earlier daily gains.
Daily Technical Levels
Pivot Point: 1.3087
Entry Price – Sell 1.30711
Stop Loss – 1.30711
Take Profit – 1.29911
Risk to Reward – 1:1
Profit & Loss Per Standard Lot = -$400/ +$400
Profit & Loss Per Micro Lot = -$40/ +$40
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