USD/CAD reverses and climbs to fresh highs above 1.2770

Loonie unable to hold to gains versus the US dollar.
DXY strengthens amid risk aversion, higher US yields.
Correction in commodity prices weighs on CAD, AUD and NZD.

Matías Salord FXStreet

The USD/CAD turned to the upside during the American session and printed a fresh daily high at 1.2772. Earlier it bottomed at 1.2683. The pair rose almost a hundred pips as the US dollar gained momentum amid a reversal in commodity prices.

Risk aversion continues to dominate the mood across financial markets. The greenback gained momentum during the last hours as the recovery in equity prices faced and also amid a decline in commodity prices, erasing the initial spike.

The loonie did not benefit earlier on Monday from higher crude oil prices against AUD and NZD. More recently, in American hours CAD recovered momentum pushing NZD/CAD and AUD/CAD back to neutral territory. The loonie rose boosted by risk aversion and not on higher crude oil prices.

The key driver continues to be the war in Ukraine and the response from the US and its allies. The Biden administration is looking to ban imports of Russian oil. The announcement sent crude oil prices to fresh highs since 2008.

Levels to watch

The USD/CAD is approaching again the 1.2800 area, a key resistance. A daily close above should point to more gains. The next resistance levels might be located at 1.2835 and 1.2875 (February high).

If the pair remains under 1.2800, a correction back to the 1.2700 seems possible. Below the key support stands at 1.2665; a break lower would expose 1.2630 and then the February low at 1.2585.

Technical levels

USD/CAD

Overview
Today last price	1.2765
Today Daily Change	0.0041
Today Daily Change %	0.32
Today daily open	1.2724

Trends
Daily SMA20	1.2717
Daily SMA50	1.2684
Daily SMA100	1.2648
Daily SMA200	1.2574

Levels
Previous Daily High	1.2792
Previous Daily Low	1.267
Previous Weekly High	1.281
Previous Weekly Low	1.2587
Previous Monthly High	1.2878
Previous Monthly Low	1.2636
Daily Fibonacci 38.2%	1.2746
Daily Fibonacci 61.8%	1.2717
Daily Pivot Point S1	1.2666
Daily Pivot Point S2	1.2607
Daily Pivot Point S3	1.2543
Daily Pivot Point R1	1.2788
Daily Pivot Point R2	1.2851
Daily Pivot Point R3	1.291

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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