USD/CAD jumps toward 1.2400, hits weekly highs
- US dollar losses momentum during the last hour, holds onto daily gains.
- USD/CAD remains under 1.2400, bias points to the upside.
The USD/CAD rose further amid a stronger US dollar across the board and reached at 1.2397, the highest level in a week. Afterward pulled back and it is hovering around 1.2380, up 50 pips for the day, about to post the second daily gain in a row.
The greenback is among the top performers on Tuesday. It was already higher before the release of better-than-expected consumer confidence data. US yields spiked supporting the dollar but then pulled back. The DXY is at 92.00, off highs but still on its way to the second-highest daily close since May.
End-of-month flows and incoming US employment data are events that could trigger more volatility in the market ahead.
USD/CAD short-term outlook
The bias in the short-term favors the upside. The immediate resistance is the 1.2400 area. A break higher could lead to more gains, particularly if consolidates above 1.2410. The next resistance stands at 1.2435.
On the flip side, support is seen at 1.2350. A slide under 1.2340 would weaken the greenback and below 1.2320, the outlook would favor more losses, exposing 1.2300,
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.
