Will USD/CAD Resume its Rally
USD/CAD has pulled back 200-pips with the Canadian Dollar reversing recent weakness
Canadian Dollar appears to be benefiting from higher oil prices and a broadly softer USD
USD/CAD price action might resume its advance as Federal Reserve taper risk still lingers
USD/CAD price action has pulled back over the last couple of trading sessions as volatility normalizes in the wake of the Fed’s hawkish pivot last week. Recent crude oil price gains have likely helped the Canadian Dollar strengthen and regain lost ground against its USD peer too.
USD/CAD now trades about 200-pips below its month-to-date swing high around the 1.2475-price level. Selling pressure seems to be subsiding now, however, as USD/CAD bulls look wrestle back control. This appears to align with a defense of technical support around the 38.2% Fibonacci retracement level of USD/CAD’s monthly trading range. That said, the Canadian Dollar could weaken once again and send USD/CAD price action toward the descending trendline highlighted on the chart above.
Canadian Dollar appears to be benefiting from higher oil prices and a broadly softer USD
USD/CAD price action might resume its advance as Federal Reserve taper risk still lingers
USD/CAD price action has pulled back over the last couple of trading sessions as volatility normalizes in the wake of the Fed’s hawkish pivot last week. Recent crude oil price gains have likely helped the Canadian Dollar strengthen and regain lost ground against its USD peer too.
USD/CAD now trades about 200-pips below its month-to-date swing high around the 1.2475-price level. Selling pressure seems to be subsiding now, however, as USD/CAD bulls look wrestle back control. This appears to align with a defense of technical support around the 38.2% Fibonacci retracement level of USD/CAD’s monthly trading range. That said, the Canadian Dollar could weaken once again and send USD/CAD price action toward the descending trendline highlighted on the chart above.
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