Canadian Dollar hesitates as Oil falls amid Hormuz reopening talks
- USD/CAD pulls back from 1.4050, but is lacking follow-through below 1.4030.
- Risk appetite amid Hormuz reopening hopes weighs on the USD, but the Oil fall is acting as a headwind for Loonie's rallies.
- The technical picture remains little changed with USD's bullish structure intact.
The Canadian Dollar (CAD) trades practically flat against the US Dollar (USD) on Tuesday as the risk appetite triggered by Tehran’s proposal to reopen the Strait of Hormuz has offset the decline in Crude prices. The USD/CAD pair is changing hands at 1.4035 at the time of writing, as the reversal from one-and-a-half-month highs, at 1.4050, struggles to find acceptance below 1.4030.
Iran has offered to reopen the Strait of Hormuz, a waterway that carried about 20% of the world’s global Oil supply before the conflict, in a period of seven days after the US lifts its blockade on Iran’s ports, according to a report by Kyodo News released earlier on Tuesday, citing a senior Iranian government official.
This news comes after US President Donald Trump affirmed that he is willing to meet Iranian President Masoud Pezeshkian at the UN General Assembly, which will start in New York on Tuesday.
The report has triggered fresh hopes of a negotiated end to the conflict, which is about to enter its seventh month, and has brought government debt surging across the world and the global economy to the brink of recession.
Technical Analysis: US Dollar's bullish trend remains intact
USD/CAD maintains its near-term constructive structure in place, with recent price action highlighting a potential Gartley pattern, aiming for the 1.4100 area or higher. Momentum indicators in the daily chart reinforce this view, as the Relative Strength Index (14) is high but below overbought territory, and the Moving Average Convergence Divergence (MACD) stands in positive territory, printing wide green bars in the histogram.
Immediate resistance is at the intra-day high of 1.4050, which is coincident with the 61.8% Fibonacci retracement of the June-August decline. Further up, the area between the August 5 high at 1.4080 and the 78.6% Fibonacci retracement, at 1.4135, looks like a plausible target for the current rally.
On the downside, initial support is seen at previous tops around 1.4000 (September 16, 17 and 18 highs) ahead of the September 2 high, at 1.3930.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
Canadian Dollar Price Today
The table below shows the percentage change of Canadian Dollar (CAD) against listed major currencies today. Canadian Dollar was the strongest against the Australian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.02% | -0.01% | -0.25% | 0.00% | 0.04% | -0.45% | -0.33% | |
| EUR | 0.02% | 0.00% | -0.23% | 0.03% | 0.06% | -0.41% | -0.30% | |
| GBP | 0.00% | -0.01% | -0.27% | 0.00% | 0.06% | -0.41% | -0.31% | |
| JPY | 0.25% | 0.23% | 0.27% | 0.26% | 0.30% | -0.18% | -0.04% | |
| CAD | -0.00% | -0.03% | 0.00% | -0.26% | 0.04% | -0.42% | -0.30% | |
| AUD | -0.04% | -0.06% | -0.06% | -0.30% | -0.04% | -0.47% | -0.33% | |
| NZD | 0.45% | 0.41% | 0.41% | 0.18% | 0.42% | 0.47% | 0.13% | |
| CHF | 0.33% | 0.30% | 0.31% | 0.04% | 0.30% | 0.33% | -0.13% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Canadian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent CAD (base)/USD (quote).
Nothing in this material constitutes investment advice, personal recommendation, investment research, an offer, or a solicitation to buy or sell any financial instrument. The content has been prepared without consideration of your individual investment objectives, financial situation, or needs, and should not be treated as such.
Past performance is not a reliable indicator of future performance and/or results. Forward-looking scenarios or forecasts are not a guarantee of future performance. Actual results may differ materially from those anticipated.
Mitrade makes no representation or warranty as to the accuracy or completeness of the information provided and accepts no liability for any loss arising from reliance on such information.
Recommended Articles
