USD/CAD rebounds toward 1.2850 as the US dollar stabilizes

US dollar recovers during the American session, DXY still down sharply.
Canadian dollar among weakest currencies on Tuesday despite higher crude oil prices.
USD/CAD finds support above 1.2800.

Matías Salord FXStreet

The USD/CAD bounced to the upside and eared losses on Tuesday after the greenback gained momentum during the American session. The pair printed a fresh daily high at 1.2854 and it is hovering around 1.2845. Earlier on Tuesday it bottomed at 1.2805, the lowest level since May 5.

The US dollar was falling sharply across the board amid risk appetite. During the last hours, the greenback recovered ground after US yields turned to the upside and as US stocks trimmed gains. The US 10-year yield rose from 2.90% to 2.97% and the 30-year yield from 3.11% to 3.16%. The Dow Jones is up by 0.55% or 165 points, down 200 points from the high.

Economic data from the US came in above expectations. Retail Sales rose 0.9% in April against the 0.7% of market consensus (March figures were revised higher). Industrial Production advanced 1.1%, above the 0.5% expected by analysts. The numbers helped the dollar.

The loonie is falling also versus the Australian and the New Zealand dollar, despite higher crude oil prices. The broad correction in markets boosted NZD/CAD and AUD/CAD.

Rebounding from the 20-day SMA

The slide of USD/CAD from the highest level in more than a year found support above the 1.2800 area. The rebound pushed the price back above the 20-day Simple Moving Average at 1.2835. A daily close below the line could open the doors to another test of 1.2800. The next support stands at 1.2770 and 1.2720.

If USD/CAD holds above the 20-day SMA, attention would turn to the next resistance at 1.2855 followed by 1.2870 and 1.2905.

Technical levels

USD/CAD

Overview
Today last price	1.284
Today Daily Change	-0.0005
Today Daily Change %	-0.04
Today daily open	1.2845

Trends
Daily SMA20	1.2824
Daily SMA50	1.2696
Daily SMA100	1.269
Daily SMA200	1.2654

Levels
Previous Daily High	1.2982
Previous Daily Low	1.2836
Previous Weekly High	1.3077
Previous Weekly Low	1.2893
Previous Monthly High	1.288
Previous Monthly Low	1.2403
Daily Fibonacci 38.2%	1.2892
Daily Fibonacci 61.8%	1.2926
Daily Pivot Point S1	1.2793
Daily Pivot Point S2	1.2742
Daily Pivot Point S3	1.2648
Daily Pivot Point R1	1.2939
Daily Pivot Point R2	1.3033
Daily Pivot Point R3	1.3084

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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