USD/CAD jumps to 1.2765, moves away from multi-year lows
- US dollar moves higher supported by risk aversion.
- USD/CAD erases weekly losses, faces resistance at the 20-day SMA.
The USD/CAD rose to 1.2765, reaching the highest level in three days. It represents a sharp reversal after reaching on Thursday at 1.2623, the lowest intraday level since 2018.
A rally of the US dollar triggered the move in USD/CAD. The greenback gained momentum as equity prices in Wall Street tumbled to the lowest in more than a week. During the last hour, main indexes trimmed losses favoring a small retreat in USD/CAD to 1.2735.
Crude oil prices are falling sharply. The WTI barrel drops by 3% at $52.00. Gold tumbles to $1820. The VIX hit one-week highs before pulling back.
Ahead of a long weekend in the US, the DXY is up by 0.45% about to post the highest close in a month. Lower US yields, neither weaker-than-expected US economic data weighed on the greenback.
From a technical perspective, the USD/CAD continues to move with a dominant bearish bias. In the very short-term, the pair failed for the second week in a row to remain under 1.2650, showing some difficulties on the downside. The recovery of the dollar is facing resistance at the 20-day moving average at 1.2755; the next resistance stands near 1.2790. A daily close above 1.2800 would point to further gains.
Technical levels
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.
