• 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 price 1.2468
Today Daily Change -0.0032
Today Daily Change % -0.26
Today daily open 1.2502
 
Trends
Daily SMA20 1.2669
Daily SMA50 1.2706
Daily SMA100 1.2622
Daily SMA200 1.2502
 
Levels
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

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD holds above 1.0700 after US inflation data

EUR/USD holds above 1.0700 after US inflation data

EUR/USD stays in the lower half of its daily range but continues to trade above 1.0700 in the early American session on Friday. The data from the US showed that the annual Core PCE Price Index declined to 4.9% in April as expected, making it difficult for the dollar to gather strength.

EUR/USD News

GBP/USD trades above 1.2600 as dollar struggles to find demand

GBP/USD trades above 1.2600 as dollar struggles to find demand

GBP/USD clings to daily gains above 1.2600 and remains on track to end the week in positive territory. The greenback struggles to attract investors after the data from the US showed that PCE inflation softened in April. 

GBP/USD News

Gold pulls away from daily highs, holds above $1,850

Gold pulls away from daily highs, holds above $1,850

Gold has lost its traction in the second half of the day on Friday and declined toward the $1,850 area. The benchmark 10-year US Treasury bond yield staged a modest rebound on the US PCE inflation data, not allowing XAU/USD to preserve its bullish momentum.

Gold News

Terra’s LUNA 2.0 support expands with Binance and Kraken welcoming the airdrop, here’s how you need to prepare

Terra’s LUNA 2.0 support expands with Binance and Kraken welcoming the airdrop, here’s how you need to prepare

Terra’s LUNA fork proposal has passed with 65.5% votes, Revival Plan 2 in action without algorithmic stablecoin UST. LUNA price could wipe out losses incurred by holders in the colossal crash of LUNC and UST. 

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures