USD/CAD extends gains above 1.2800 ahead of Poloz

Canadian dollar extends losses ahead of Poloz’s testimony.
USD/CAD up for the fourth consecutive day, supported by a stronger US Dollar.

Matías Salord FXStreet

The Loonie is falling against the fourth-day in-a-row against the US dollar. The USD/CAD broke above 1.2800 and peaked at 1.2839, the highest level since April 4. As of writing it was hovering near daily highs, holding a strong bullish tone.

A stronger US dollar was the main driver of the pair on Monday. US Dollar Index Futures reached 90.55, the strongest since March 1 supported by higher US yields. The 10Y rose to 2.99%, the highest since 2014.

The Loonie failed to get support from data. Canadian wholesale trade declined 0.8% in
February, against expectations of a 0.5% gain. Progress around NAFTA negotiations did not benefit the Loonie, neither the Mexican Peso.

Later today, Bank of Canada Governor Stephen Poloz will present testimony to the Parliament. His comments regarding monetary policy and economic outlook are likely to impact on the CAD,

Technical levels

To the upside, resistance levels might be seen at 1.2860 (Mar 29 & 30 high), 1.2900 and 1.2945 (Apr 2 low). On the flip side, support could be located at 1.2805, 1.2745 (Apr 5 low) and 1.2715.

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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