USD/CAD looks to extend the rebound beyond 1.2900 amid sliding oil prices

USD/CAD benefits from sliding oil prices despite risk-aversion, USD sell-off.
USD/CAD bulls gain strength to test the critical daily resistance line at 1.2920.
Daily RSI remains firmer above 50.00 while 21-DMA acts as strong support.

Dhwani Mehta FXStreet

USD/CAD is extending its recovery into the second straight day this Tuesday, reversing the previous week’s sluggish performance.

The renewed strength in the major can be associated with the continued sell-off in oil prices, as markets remain hopeful for a truce in the Russia-Ukraine war.

Officials from both sides have been trying hard to achieve progress on their peace talks, although the ground realities appear different amid the ongoing missiles attacks on Kyiv.

Meanwhile, markets look to reposition ahead of the critical two-day Fed meeting, which begins later on Tuesday. A profit-taking slide is seen in the US dollar alongside the Treasury yields but the slump in oil prices is helping overcome the bearish pressures on the USD/CAD pair.

Technically, USD/CAD looks to extend its rebound from the bullish 21-Daily Moving Average (DMA) support, now at 1.2753.

In doing so, bulls target the two-month-old rising trendline resistance at 1.2920 on a clear break of the 1.2900 round level.

The 14-day Relative Strength Index (RSI) is pointing higher above the midline, underpinning the bullish potential.

USD/CAD: Daily chart

On the flip side, any retracement will test the daily lows of 1.2814, below which a sharp decline towards the 21-DMA will be in the offing.

A sustained break below the latter will bring strong support at 1.2692 in play. That is the ascending 50-DMA.

USD/CAD: Additional levels to consider

USD/CAD

Overview
Today last price	1.2856
Today Daily Change	0.0030
Today Daily Change %	0.23
Today daily open	1.2824

Trends
Daily SMA20	1.2748
Daily SMA50	1.269
Daily SMA100	1.2675
Daily SMA200	1.2596

Levels
Previous Daily High	1.2827
Previous Daily Low	1.2729
Previous Weekly High	1.2901
Previous Weekly Low	1.2686
Previous Monthly High	1.2878
Previous Monthly Low	1.2636
Daily Fibonacci 38.2%	1.2789
Daily Fibonacci 61.8%	1.2766
Daily Pivot Point S1	1.276
Daily Pivot Point S2	1.2695
Daily Pivot Point S3	1.2662
Daily Pivot Point R1	1.2858
Daily Pivot Point R2	1.2891
Daily Pivot Point R3	1.2955

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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