USD/CAD keeps eyes on 1.2580 amid firmer US dollar

USD/CAD approaches the 1.2580 level, tracks the movement in the US dollar.
The optimism surrounding the USD acts as a catalyst for the pair.
However, recovery in crude oil prices capped the gains.

FXStreet Team FXStreet

The USD/CAD pair bounced from the daily lows near the 1.2525 level and staged a recovery of 40 pips in the early European session.

The move is being sponsored by the stronger US dollar and the prevailing risk uncertainties in the markets. At the time of writing, USD/CAD is trading at 1.2565, up by 0.29% on the day.

The pair started the fresh trading week on a positive note by shrugging off Friday’s weakness. The upbeat US economic outlook on behalf of the government support measures and a rapid vaccination drive keeps the US dollar in demand. Fed Chair Jerome Powell in his interview with CBS’s news magazine said that the US economy is at an “inflection point” with stronger growth and hiring, but COVID-19 remains a threat.

The prevailing risk-off mood in global equity indices also benefited the greenback. In the meantime, the recovery in crude oil prices limits losses for the pair. The loonie is directly affected by fluctuations in oil prices.

Investors await the release of the Business Outlook Survey Indicator Q1 data and the BOC Business Outlook Survey for fresh trading opportunities. As for now, the dynamics around the US dollar continue to influence the pair’s prices.

USD/CAD technical levels

USD/CAD

Overview
Today last price	1.2564
Today Daily Change	0.0035
Today Daily Change %	0.28
Today daily open	1.2529

Trends
Daily SMA20	1.2545
Daily SMA50	1.262
Daily SMA100	1.2708
Daily SMA200	1.2982

Levels
Previous Daily High	1.2611
Previous Daily Low	1.2526
Previous Weekly High	1.2635
Previous Weekly Low	1.2502
Previous Monthly High	1.274
Previous Monthly Low	1.2365
Daily Fibonacci 38.2%	1.2559
Daily Fibonacci 61.8%	1.2579
Daily Pivot Point S1	1.25
Daily Pivot Point S2	1.2471
Daily Pivot Point S3	1.2415
Daily Pivot Point R1	1.2585
Daily Pivot Point R2	1.264
Daily Pivot Point R3	1.2669

Author

FXStreet Team

FXStreet

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