USD/CAD in search of a firm direction, stuck in a range near 1.3400 mark
• The US bond yields rebound from 15-month lows and lend some support to the USD.
• A strong pickup in crude oil prices underpin Loonie and kept a lid on any strong up-move.
The USD/CAD pair lacked any firm intraday directional bias and is currently placed in the neutral territory, around the 1.3400 handle.
The pair stalled its overnight retracement slide from two-week tops and managed to find some support near the 1.3385, albeit a combination of diverging forces failed to provide any meaningful impetus and led to a subdued/range-bound price action through the early European session on Tuesday.
A goodish rebound in the US Treasury bond yields from 15-month lows provided a minor lift to the US Dollar and extended some support to the major. The positive factor was largely offset by a strong pickup in crude oil prices, now up over 1.0%, which underpinned demand for the commodity-linked currency - Loonie and kept a lid on any meaningful up-move.
Hence, it would be prudent to wait for a convincing move in either direction before traders start positioning for any meaningful intraday momentum. Later during the early North-American session, the US economic docket, featuring the housing market data and followed by the Conference Board's Consumer Confidence Index will now be looked upon for some fresh impetus.
Technical levels to watch
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
