USD/CAD holds gains above 1.2600 amid weaker USD and WTI prices

USD/CAD remains supported above 1.2600 amid risk-on mood.
WTI-price weakness and subdued USD keeps the range play intact.
Further upside remains at the mercy of the US data, Powell’s speech.

Dhwani Mehta FXStreet

USD/CAD is trading on the front foot above 1.2600, consolidating the two-day uptrend to five-day highs of 1.2634.

The pause in the USD/CAD advance could be attributed to the subdued trading seen in the US dollar against its main peers so far this Thursday. The greenback has preserved the American rebound, although lacks follow-through bias ahead of the Fed Chair Jerome Powell’s speech at the IMF Spring event later today.

Meanwhile, the bearish sentiment around WTI prices weighs on the resource-linked Canadian dollar, in turn, supporting the upside in the spot. Oil prices remain undermined by a hefty build in the US gasoline inventories while mixed Asian equities also add to the weight on the higher-yielding oil.

On Wednesday, dovish FOMC minutes, uncertainty over President Joe Biden’s huge infrastructure bill and rising Treasury yields spooked investors, as they scurried for safety in the US currency.

This Thursday, markets look forward to the US weekly jobless claims and Powell’s appearance for fresh near-term trading opportunities.

USD/CAD: Technical levels

USD/CAD

Overview
Today last price	1.2621
Today Daily Change	0.0012
Today Daily Change %	0.10
Today daily open	1.2609

Trends
Daily SMA20	1.254
Daily SMA50	1.2631
Daily SMA100	1.2719
Daily SMA200	1.2993

Levels
Previous Daily High	1.2635
Previous Daily Low	1.2563
Previous Weekly High	1.2647
Previous Weekly Low	1.2528
Previous Monthly High	1.274
Previous Monthly Low	1.2365
Daily Fibonacci 38.2%	1.2607
Daily Fibonacci 61.8%	1.259
Daily Pivot Point S1	1.257
Daily Pivot Point S2	1.253
Daily Pivot Point S3	1.2498
Daily Pivot Point R1	1.2641
Daily Pivot Point R2	1.2674
Daily Pivot Point R3	1.2713

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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