USD/CAD jumps to six-day highs above 1.2850

Canadian dollar among worst performers of the American session.
US and Canadian bonds rise sharply.
USD/CAD rises to the highest level since last Wednesday.

Matías Salord FXStreet

The USD/CAD broke to the upside after moving in a small range for hours and jumped to 1.2872, reaching the highest level since last Thursday. The pair remains near the highs, with the bullish momentum intact.

Weaker loonie, USD/CAD rebounds from weekly lows

The loonie dropped across the board during the American session amid risk aversion. It also lost ground versus AUD and NZD. The Dow Jones is falling 1.40% and the Nasdaq 3.40%. US and Canadian yields are falling, currently at multi-day lows.

The slide in equity prices offered some support to the dollar that was affected by weaker than expected US economic data. The S&P Global PMI came in below expectations. The S&P Global Composite dropped in May to the lowest in five months according to preliminary data at 53.8, down from 56 and below the 55.5 of market consensus. New home Sales fell 16.6% in April, worse than expectations. On Wednesday, the FOMC minutes will be released. In Canada, the next important economic report is due on Thursday with retail sales.

Resistance ahead at 1.2890

The USD/CAD is turning to the upside, bouncing from the lowest in two weeks. The pair found support above 1.2760 and now is looking to test the 1.2890 area. A consolidation above 1.2900 should strengthen the outlook for the dollar.

On the flip side, 1.2815/20 is the key support. If USD/CAD falls below, the recent low at 1.2764 would be exposed. Below the next support stands at 1.2714 (May 5 low).

Technical levels

USD/CAD

Overview
Today last price	1.2856
Today Daily Change	0.0089
Today Daily Change %	0.70
Today daily open	1.2767

Trends
Daily SMA20	1.2874
Daily SMA50	1.2698
Daily SMA100	1.2694
Daily SMA200	1.2661

Levels
Previous Daily High	1.285
Previous Daily Low	1.2766
Previous Weekly High	1.2982
Previous Weekly Low	1.2776
Previous Monthly High	1.288
Previous Monthly Low	1.2403
Daily Fibonacci 38.2%	1.2799
Daily Fibonacci 61.8%	1.2818
Daily Pivot Point S1	1.2739
Daily Pivot Point S2	1.2711
Daily Pivot Point S3	1.2655
Daily Pivot Point R1	1.2822
Daily Pivot Point R2	1.2878
Daily Pivot Point R3	1.2906

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.

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