USD/CAD jumps toward 1.3740 amid a stronger US Dollar


  • US Dollar gains momentum as US yields rise ahead of FOMC decision.  
  • Canada: CPI rose 0.4% in February, core up 0.5%.
  • USD/CAD support at 1.3650 remains in place.

The USD/CAD bottomed at 1.3643 following the release of Canadian inflation, the lowest since March 7 and then rebounded sharply amid a stronger US Dollar, approaching 1.3740.

The move to the upside occurred amid rising US yields that boosted the Greenback. The US 10-year yield approached 3.60% and the 2-year is back above 4.00%.

The Federal Reserve started on Tuesday it's two-day meeting. On Wednesday, the US central bank is expected to announce a 25 bps rate hike to 4.75% - 5.00%. Attention is set on how the Fed assess current development regarding the banking sector. Ahead of the decision, the US Dollar is posting mixed results.

Canada's inflation keeps slowing

Data released on Tuesday showed the Consumer Price Index dropped to the lowest level in 13 months from 5.9% to 5.2%, below the 5.4% of market consensus; the core rate fell from 5% to 4.7%. The Loonie rose marginally after the report.

Despite falling versus the US Dollar on Tuesday, CAD is up for the second day in a row versus AUD and NZD.

The USD/CAD peaked during the American session at 1.3736 and it is hovering around 1.3730. It rose almost a hundred pips from the daily low.

The pair was rejected from under the key support area of 1.3350. If the Loonie consolidates below, more losses seem likely. On the upside, USD/CAD is testing a downtrend line, and above 1.3740, the upside could extend further.

USD/CAD 4-daily chart

 

USD/CAD

Overview
Today last price 1.3729
Today Daily Change 0.0065
Today Daily Change % 0.48
Today daily open 1.3664
 
Trends
Daily SMA20 1.3669
Daily SMA50 1.3503
Daily SMA100 1.351
Daily SMA200 1.3344
 
Levels
Previous Daily High 1.3747
Previous Daily Low 1.3652
Previous Weekly High 1.3828
Previous Weekly Low 1.3652
Previous Monthly High 1.3666
Previous Monthly Low 1.3262
Daily Fibonacci 38.2% 1.3688
Daily Fibonacci 61.8% 1.3711
Daily Pivot Point S1 1.3628
Daily Pivot Point S2 1.3592
Daily Pivot Point S3 1.3533
Daily Pivot Point R1 1.3724
Daily Pivot Point R2 1.3783
Daily Pivot Point R3 1.3819

 

 

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