USD/CAD bounces off a fortnight bottom beyond 1.3150 amid US election polls

• USD/CAD snaps three-day losing streak after probing October 21 bottom.
• Trump campaign gains bid in Florida, Biden gains 44 votes, eyes on final words from Florida, North Carolina.

USD/CAD keeps recovery moves from 1.3095, the lowest since October 21, while taking the bids around 1.3160 amid Wednesday’s Asian session.

US dollar recently gained bids as President Donald Trump and company inches closer to the victory in the key states like Florida. Also dimming the previous risk-on mood could be the House Republican leader Mitch McConnell’s re-election in Kentucky.

Stay tuned: Four more years for Trump or a victory for Biden? – Live coverage

It’s worth mentioning that the WTI’s pullback from $38.93, the one-week high, also favor the USD/CAD buyers as oil becomes Canada’s highest export earner. The energy benchmark earlier cheered the surprise draw of -8.01M, versus 4.55M prior, in private inventory data published by the American Petroleum Institute (API).

While portraying the risks, S&P 500 Futures shave off the initial 1.0% gains while stocks in Asia-Pacific also drop. Further, the US dollar index snaps the two-day losing streak while treasury yields drop back below 0.90% after rising to a fresh five-month high earlier in Asia.

Looking forward, traders will be closely watching the polls from the US election for immediate direction.

Technical analysis

A clear downside break of the two-month-old support line, at 1.3100 now, will favor the bears’ entry.