USD/CAD off six-week highs, tracks USD lower ahead of BOC’s Macklem

USD/CAD bulls take a breather after a remarkable upsurge to six-week highs.
The US dollar corrects, dragging USD/CAD lower towards 1.2700.
WTI price tumbles over 4% on China covid lockdown concerns, risk-aversion.

Dhwani Mehta FXStreet

USD/CAD is off the six-week highs of 1.2757, consolidating the upsurge above 1.2700 amid a correction in the US dollar while the WTI price keeps falling.

The pullback in the major could be attributed to the correction in the US dollar across the board despite rife risk-aversion. The global market sell-off is boosting the haven demand for the US bonds while weighing heavily on the US Treasury yields. The weakness in the yields is dragging the greenback lower.

USD/CAD, however, continues to find support from plunging oil prices, with WTI meandering in over two-week lows at $97.03. The extended slump in the black gold comes on the back of heightened worries over demand for oil and its products after the covid outbreaks in China, which are rapidly spreading to Beijing. The Chinese authorities are planning to strengthen the restrictions in Shanghai while the lockdowns could extend to Beijing.

Looking ahead, the pair will continue to follow the price action in the dollar, as well as, the US oil, in the absence of any top-tier economic releases from the US and Canada. Although the speech by Bank of Canada (BOC) Governor Tiff Macklem will also hog the limelight.

USD/CAD: Technical levels to consider

USD/CAD

Overview
Today last price	1.2726
Today Daily Change	0.0018
Today Daily Change %	0.14
Today daily open	1.2712

Trends
Daily SMA20	1.2564
Daily SMA50	1.2647
Daily SMA100	1.2677
Daily SMA200	1.2628

Levels
Previous Daily High	1.2726
Previous Daily Low	1.2568
Previous Weekly High	1.2726
Previous Weekly Low	1.2458
Previous Monthly High	1.2901
Previous Monthly Low	1.243
Daily Fibonacci 38.2%	1.2666
Daily Fibonacci 61.8%	1.2628
Daily Pivot Point S1	1.2611
Daily Pivot Point S2	1.251
Daily Pivot Point S3	1.2452
Daily Pivot Point R1	1.277
Daily Pivot Point R2	1.2827
Daily Pivot Point R3	1.2928

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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