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

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