USD/CAD rallies to multi-day tops, further beyond 1.4200 mark

USD/CAD gains traction for the second straight session amid some follow-through USD strength.
Recovering oil prices did little to lend any support to the loonie or stall the pair’s positive move.
Investors now look forward to important Canadian/US macro data for some meaningful impetus.

Haresh Menghani FXStreet

The USD/CAD pair finally broke out of its daily trading range and climbed to multi-day tops, further beyond the 1.4200 mark during the early European session.

The pair added to the previous day's strong gains and gained some follow-through traction for the second consecutive session on Tuesday amid the prevailing buying interest surrounding the US dollar.

A goodish pickup in the US Treasury bond yields – supported by a further improvement in the global risk sentiment – underpinned the USD demand and seemed to be a key factor driving the pair higher.

Against the backdrop of the Fed's unlimited QE and a massive $2.2 trillion US economic stimulus package, a strong rebound in China's manufacturing activity in March boosted investors’ confidence on Tuesday.

The risk-on mood allowed crude oil prices to stage a solid recovery from 18-year lows, albeit did little to lend any support to the commodity-linked currency – the loonie or stall the pair's intraday positive move.

It will now be interesting to see if the pair is able to capitalize on the move or traders opt to lighten their bullish positions ahead of Tuesday's important macro releases, both from the US and Canada.

Tuesday's economic docket highlights the release of the monthly Canadian GDP data for January and the Conference Board's Consumer Confidence Index from the US, which might provide a fresh impetus.

Technical levels to watch

USD/CAD

Overview
Today last price	1.4218
Today Daily Change	0.0051
Today Daily Change %	0.36
Today daily open	1.4167

Trends
Daily SMA20	1.3972
Daily SMA50	1.354
Daily SMA100	1.3348
Daily SMA200	1.3272

Levels
Previous Daily High	1.4184
Previous Daily Low	1.3983
Previous Weekly High	1.456
Previous Weekly Low	1.3922
Previous Monthly High	1.3465
Previous Monthly Low	1.3202
Daily Fibonacci 38.2%	1.4107
Daily Fibonacci 61.8%	1.406
Daily Pivot Point S1	1.4039
Daily Pivot Point S2	1.391
Daily Pivot Point S3	1.3837
Daily Pivot Point R1	1.424
Daily Pivot Point R2	1.4312
Daily Pivot Point R3	1.4441

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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