|

USD/CAD: 1.2450 support remains at risk, as WTI clocks fresh seven-year highs

  • USD/CAD is sold-off heavily into the US dollar’s weakness amid easing T-yields.
  • Surging WTI prices keep the downside momentum intact in the major.
  • The pair eyes daily close below 200-DMA to unleash additional declines.

USD/CAD is struggling to extend the rebound from near two-month lows of 1.2451 in the American session, as the relentless rise in WTI prices continues to undermine the sentiment around the major.

Despite the latest downtick, the Canadian dollar preserves most of the daily advance, as oil prices continue to ride higher on escalating geopolitical tensions, with the US imposing sanctions on four Ukrainian officials it accused of destabilizing the latter, as America is trying hard to dissuade Russia from invading Ukraine. 

Meanwhile, the black gold shrugged off a build in the US weekly crude stockpiles to the tune of 515K, according to the data published by Energy Information Administration on Thursday. The risk-on market profile aids the rally in the higher-yielding oil, adding credence to the bullish momentum around the resource-linked loonie.

On the US dollar-side of the equation, the pullback in the Treasury yields from two-year highs kept the greenback pressured, in turn, rendering negative for the spot. The correction in the US rates comes after it rallied hard earlier this week on aggressive Fed rate hike expectations.

Technically, USD/CAD remains vulnerable while below the critical horizontal 200-Daily Moving Average (DMA) at 1.2501.

That said, the recent range lows near 1.2450 appear at risk, as the 14-day Relative Strength Index (RSI) points north below the midline.

Meanwhile, the bear cross remains in play after the 21-DMA breached the 50-DMA from above on Tuesday.

A fresh downswing, if triggered, could expose the round level of 1.2400 while any meaningful recovery will need acceptance above the 200-DMA on a daily closing basis.

USD/CAD: Daily chart

USD/CAD: Additional levels to consider

USD/CAD

Overview
Today last price1.2468
Today Daily Change-0.0032
Today Daily Change %-0.26
Today daily open1.2502
 
Trends
Daily SMA201.2669
Daily SMA501.2706
Daily SMA1001.2622
Daily SMA2001.2502
 
Levels
Previous Daily High1.2525
Previous Daily Low1.2451
Previous Weekly High1.2698
Previous Weekly Low1.2454
Previous Monthly High1.2964
Previous Monthly Low1.2608
Daily Fibonacci 38.2%1.2479
Daily Fibonacci 61.8%1.2497
Daily Pivot Point S11.2461
Daily Pivot Point S21.2419
Daily Pivot Point S31.2387
Daily Pivot Point R11.2534
Daily Pivot Point R21.2566
Daily Pivot Point R31.2608

Author

Dhwani Mehta

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

More from Dhwani Mehta
Share:

Editor's Picks

EUR/USD challenges 1.1800, two-week lows

EUR/USD remains on the defensive, extending its leg lower to the vicinity of the 1.1800 region, or two-week lows, on Tuesday. The move lower comes as the US Dollar gathers further traction ahead of key US data releases, inclusing the FOMC Minutes, on Wednesday.

GBP/USD looks weaker near 1.3500

GBP/USD adds to Monday’s pessimism and puts the 1.3500 support to the test on Tuesday. Cable’s marked pullback comes in response to extra gains in the Greenback while disappointing UK jobs data also collaborate with the offered bias around the British Pound.

Gold loses further momentum, approaches $4,800

Gold recedes to fresh two-week troughs around the $4,800 region per troy ounce on Tuesday. The precious metal builds on Monday’s downtick following a marked rebound in the US Dollar and mixed US Treasury yields across the board.

Crypto Today: Bitcoin, Ethereum, XRP upside looks limited amid deteriorating retail demand

The cryptocurrency market extends weakness with major coins including Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) trading in sideways price action at the time of writing on Tuesday.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months. 

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.