- USD/CAD bounces from nine-day lows to recapture the 1.2800 mark.
- The pair is rescued by the broad rebound in the US dollar amid light trading.
- Bulls remain hopeful while above this critical daily support line.
The greenback is extending the recovery from monthly lows against its major peers, mainly driven by profit-taking ahead of the New Year Eve celebrations.
Meanwhile, a pullback in WTI prices from higher levels also collaborates with the renewed upside in the CAD pair.
Traders now look forward to the US Jobless Claims data for fresh trading impulse but the risk trends and year-end flows will remain the main market drivers.
Looking at USD/CAD’s daily chart, the price has recaptured the critical 21-Daily Moving Average (DMA) at 1.2802, although needs a daily closing above the latter to confirm a bullish reversal from weekly troughs.
If that happens, bulls will then flex their muscles towards the next upside barrier, located at 1.2850. Further up, a rally towards the 1.2900 round number cannot be ruled out.
The fact that the pair trades above all the major DMAs is supportive of the bullish potential. To add, the 14-day Relative Strength Index (RSI) is trading above the midline, pointing to more gains in the making.
USD/CAD: Daily chart
On the flip side, a sharp sell-off towards the December 13 lows of 1.2706 could kick in should the horizontal support line at 1.2770 gets breached on a daily candlestick closing basis.
Further south, the confluence of the upward-sloping 50-DMA and December 9 lows of 1.2648 will be a tough nut to crack for sellers.
USD/CAD: Additional levels to consider
|Today last price||1.2806|
|Today Daily Change||0.0009|
|Today Daily Change %||0.07|
|Today daily open||1.2797|
|Previous Daily High||1.2835|
|Previous Daily Low||1.2788|
|Previous Weekly High||1.2964|
|Previous Weekly Low||1.2786|
|Previous Monthly High||1.2837|
|Previous Monthly Low||1.2352|
|Daily Fibonacci 38.2%||1.2806|
|Daily Fibonacci 61.8%||1.2817|
|Daily Pivot Point S1||1.2778|
|Daily Pivot Point S2||1.276|
|Daily Pivot Point S3||1.2732|
|Daily Pivot Point R1||1.2825|
|Daily Pivot Point R2||1.2853|
|Daily Pivot Point R3||1.2872|
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.