- USD/CAD reversed an early dip to 1.3650-45 region amid a goodish intraday USD rebound.
- A modest pickup in crude oil prices underpinned the loonie and capped gains for the pair.
The USD/CAD pair refreshed daily tops during the early North American session, with bulls now eyeing a sustained move beyond the 1.3700 round-figure mark.
The pair managed to reverse an early dip to the 1.3650-45 region and has now moved back into the positive territory. After spending a major part of Monday's trading session in the red, the US dollar staged a goodish intraday bounce and was seen as one of the key factors behind the USD/CAD pair's uptick of around 50 pips.
Investors remain concerned a surge in the number of coronavirus cases could trigger renewed lockdown measures. This, in turn, dampened prospects for a sharp V-shaped global economic recovery and continued weighing on investors' sentiment. The prevalent cautious mood extended some support to the greenback's relative safe-haven status.
The USD got an additional boost following the release of stronger-than-expected Pending Home Sales data, which surpassed even the most optimistic estimates and recorded a strong growth of 44.3% MoM in May. However, a positive turnaround in oil prices underpinned the commodity-linked currency – the loonie – and capped the upside for the USD/CAD pair.
Hence, it will be prudent to wait for some follow-through buying beyond Friday's swing high, around the 1.3715 region, before traders start positioning for any further near-term appreciating move. Above the mentioned barrier, the USD/CAD pair seems all set to climb further beyond mid-1.3700s, towards reclaiming the 1.3800 round-figure mark.
Technical levels to watch
|Today last price||1.369|
|Today Daily Change||0.0003|
|Today Daily Change %||0.02|
|Today daily open||1.3687|
|Previous Daily High||1.3716|
|Previous Daily Low||1.3628|
|Previous Weekly High||1.3716|
|Previous Weekly Low||1.3486|
|Previous Monthly High||1.4173|
|Previous Monthly Low||1.3715|
|Daily Fibonacci 38.2%||1.3682|
|Daily Fibonacci 61.8%||1.3662|
|Daily Pivot Point S1||1.3638|
|Daily Pivot Point S2||1.3589|
|Daily Pivot Point S3||1.355|
|Daily Pivot Point R1||1.3726|
|Daily Pivot Point R2||1.3765|
|Daily Pivot Point R3||1.3814|
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