USD/CAD eyes exhaustion at 1.2830 as oil rebounds, BOC’s Macklem in focus

USD/CAD displays a sense of exhaustion after reaching elevated levels at 1.2830.
Oil prices have rebounded sharply on the announced prudent monetary policy in China.
The speech from BOC’s Macklem will remain in focus.

Sagar Dua FXStreet

The USD/CAD pair is witnessing some signs of exhaustion after a juggernaut upside move from the previous week’s low at 1.2458. The asset has been scaling higher as negative market sentiment underpins the safe-haven assets. While exhaustion signals at monthly highs of 1.2830 could be tagged to a firmer rebound in the oil prices.

China’s promise to support its economy through prudent monetary policy has infused fresh blood in oil prices. More liquidity in the economy to support the demand will fetch oil requirements to normalcy. The oil prices have reclaimed the $100.00 mark. The black gold wasn’t performing well as the epidemic of the Covid-19 to Beijing from Shanghai renewed the fears of a slippage in the aggregate demand in China. Also, the mass testing in Beijing was advocated for severe lockdown measures.

It is worth noting that China is the biggest importer of oil, and any concerns in demand for oil from the dragon economy could result in server impact on oil prices. Also, Canada is the largest exporter of oil to the US, and higher oil prices result in higher fund inflows for the loonie area.

Investors will focus on the speech from Bank of Canada (BOC)’s Governor Tiff Macklem, which is due on Tuesday. Also, the quarterly US Gross Domestic Product (GDP) number will fall on the same day, which is expected to land at 7.2%.

USD/CAD

Overview
Today last price	1.2807
Today Daily Change	-0.0019
Today Daily Change %	-0.15
Today daily open	1.2826

Trends
Daily SMA20	1.2591
Daily SMA50	1.2649
Daily SMA100	1.2679
Daily SMA200	1.2629

Levels
Previous Daily High	1.2828
Previous Daily Low	1.2684
Previous Weekly High	1.2726
Previous Weekly Low	1.2458
Previous Monthly High	1.2901
Previous Monthly Low	1.243
Daily Fibonacci 38.2%	1.2773
Daily Fibonacci 61.8%	1.2739
Daily Pivot Point S1	1.2731
Daily Pivot Point S2	1.2636
Daily Pivot Point S3	1.2588
Daily Pivot Point R1	1.2874
Daily Pivot Point R2	1.2922
Daily Pivot Point R3	1.3017

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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