USD/CAD advances beyond 1.2450 on unabated USD strength


  • USD/CAD extends rally to fresh multi-month highs on Friday.
  • US Dollar Index continues to push higher after breaking above 92.00.
  • CAD struggles to capitalize on recovering crude oil prices. 

The USD/CAD pair broke above 1.2400 on Friday and reached its strongest level since April 26 at 1.2453. As of writing, the pair was up 0.7% on the day at 1.2445. On a weekly basis, the pair is up nearly 300 pips and remains on track to post its largest weekly gain of the eyar. 

Bullard comments boost USD

The unabated USD strength remains the main market theme ahead of the weekend. In the absence of significant fundamental drivers and high-tier macroeconomic data releases, the US Dollar Index preserved its bullish momentum on Friday. Additionally, the sharp drop witnessed in Wall Street's main indexes allowed the USD to gather additional strength. Currently, the DXY is at its strongest level in more than two months at 92.35, rising 0.5% on a daily basis.

Earlier in the day, St. Louis Fed President James Bullard told CNBC that the Fed's June meeting represented a "somewhat hawkish" move. Bullard further noted that inflation was more intense than expected and said FOMC Chairman Jerome Powell officially opened taper discussions at the last meeting.

Meanwhile, the barrel of West Texas Intermediate (WTI) is up more than 1% at $71.85 on Friday but rising crude oil prices don't seem to be helping the loonie limit its losses ahead of the weekend.

Technical levels to watch for

USD/CAD

Overview
Today last price 1.2453
Today Daily Change 0.0095
Today Daily Change % 0.77
Today daily open 1.2358
 
Trends
Daily SMA20 1.2117
Daily SMA50 1.2238
Daily SMA100 1.2432
Daily SMA200 1.2716
 
Levels
Previous Daily High 1.2378
Previous Daily Low 1.2262
Previous Weekly High 1.2178
Previous Weekly Low 1.2057
Previous Monthly High 1.2352
Previous Monthly Low 1.2013
Daily Fibonacci 38.2% 1.2334
Daily Fibonacci 61.8% 1.2307
Daily Pivot Point S1 1.2288
Daily Pivot Point S2 1.2217
Daily Pivot Point S3 1.2172
Daily Pivot Point R1 1.2403
Daily Pivot Point R2 1.2449
Daily Pivot Point R3 1.2519

 

 

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