USD/CAD stalls the rebound below 1.2400 amid rising WTI prices


  • USD/CAD retreat, tracking the moves in the US dollar.
  • Rising oil prices also restrict the rebound in USD/CAD.
  • Focus remains on Powell’s testimony, API crude inventory report.

USD/CAD is seeing some fresh selling in early European trading, retreating from daily highs of 1.2386. The bulls take a breather ahead of Tuesday’s Fed Chair Jerome Powell’s testimony.

The latest leg down in the spot can be attributed to a stalled rebound in the US dollar across the board, as the Fed’s inflation debate picks up pace, driving the last week’s hawkish rhetoric in the back seat.

The upbeat market mood also weighs on the US dollar’s safe-haven demand while the Treasury yields hold firmer on the session.

On the other hand, surging oil prices also threaten the recovery mode in the major. WTI prices hit the highest levels since October 2018 at $73.33, courtesy of the uncertainty over the return of the Iranian oil supply to the market.

All eyes now remain on Powell’s Q&A session during his testimony, as his prepared remarks are already out. Powell once again dismissed inflation as transitory while adding that it should move back toward the central bank’s 2% target once supply imbalances resolve.

USD/CAD: Technical outlook

Given the strong Momentum and the pair’s bounce off the key support zone, USD/CAD may extend the recovery moves toward the immediate hurdle, namely 100-day SMA level of 1.2420. Meanwhile, a downside break of 1.2350-25 support area may seek confirmation around 1.2270 before dragging the quote to the mid-May tops surrounding the 1.2200 mark, FXStreet’s Analyst Anil Panchal notes.

USD/CAD: Additional levels

USD/CAD

Overview
Today last price 1.2375
Today Daily Change 0.0014
Today Daily Change % 0.11
Today daily open 1.2361
 
Trends
Daily SMA20 1.2152
Daily SMA50 1.2233
Daily SMA100 1.2424
Daily SMA200 1.2708
 
Levels
Previous Daily High 1.2487
Previous Daily Low 1.2353
Previous Weekly High 1.2481
Previous Weekly Low 1.2128
Previous Monthly High 1.2352
Previous Monthly Low 1.2013
Daily Fibonacci 38.2% 1.2404
Daily Fibonacci 61.8% 1.2436
Daily Pivot Point S1 1.2314
Daily Pivot Point S2 1.2267
Daily Pivot Point S3 1.218
Daily Pivot Point R1 1.2447
Daily Pivot Point R2 1.2534
Daily Pivot Point R3 1.2581

 

 

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