The USD/CAD pair was closed at 1.29907 after placing a high of 1.30247 and a low of 1.29719. The USD/CAD pair dropped on Friday after posting gains for two consecutive sessions amid the broad-based US dollar weakness.
On Thursday night, the US President Donald Trump said that he would be leaving the White House office as the Electoral Votes were in favor of Joe Biden. The smooth transition of power in the White House was not expected and weighed on the US dollar as Biden has promised to issue massive financial support for the pandemic-hit economy.
Biden has been fighting for a larger stimulus package from Congress since pre-elections, and now as he has won the US Presidency, he would likely deliver a larger fiscal aid to an economy that will add pressure on the US dollar and markets was weighing on the USD/CAD pair.
Another factor involved in the declining USD/CAD pair prices was the rising Crude oil prices. WTI crude oil prices reached the $45.65 level on Friday amid the rising optimism in the market. The risk sentiment improved after several pharmaceutical companies started reporting their vaccine’s efficacy in preventing the coronavirus.
Pfizer and BioNtech started the race to approve US FDA emergency authorization use of the vaccine, and Moderna and AstraZeneca followed them. The hopes that the global economy will soon be free from the pandemic and the social activities will resume to pre-pandemic level raised the bars for increased demand for energy sources. The hopes that energy demand will rise supported the crude oil prices that eventually added strength in the commodity-linked currency Loonie and added weight on USD/CAD pair on Friday.
There was no macroeconomic data to be released from both sides on Friday due to Thanksgiving Holiday, and the pair USD/CAD followed the US dollar’s movement ad Crude oil movement on Friday.
Daily Technical Levels
Pivot point: 1.3008
Entry Price – Sell 1.29684
Stop Loss – 1.30084
Take Profit – 1.29284
Risk to Reward – 1:1
Profit & Loss Per Standard Lot = -$400/ +$400
Profit & Loss Per Micro Lot = -$40/ +$40
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