• 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


Today last price 1.2468
Today Daily Change -0.0032
Today Daily Change % -0.26
Today daily open 1.2502
Daily SMA20 1.2669
Daily SMA50 1.2706
Daily SMA100 1.2622
Daily SMA200 1.2502
Previous Daily High 1.2525
Previous Daily Low 1.2451
Previous Weekly High 1.2698
Previous Weekly Low 1.2454
Previous Monthly High 1.2964
Previous Monthly Low 1.2608
Daily Fibonacci 38.2% 1.2479
Daily Fibonacci 61.8% 1.2497
Daily Pivot Point S1 1.2461
Daily Pivot Point S2 1.2419
Daily Pivot Point S3 1.2387
Daily Pivot Point R1 1.2534
Daily Pivot Point R2 1.2566
Daily Pivot Point R3 1.2608



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