- USD / CAD moves to positive territory before the dollar’s recovery, it remains in the recent range.
- The loonie falls heavily against rivals AUD and NZD.
USD / CAD rallied around 40 pips from the 1.2040 zone during the European session and hit two-day highs at 1.2081. The price remains close to the zone of the highs, still within the recent range.
CAD, not favored by the rally of AUD / USD, nor NZD / USD
USD / CAD failed to break below 1.2000 last week and after bouncing to 1.2140 / 50, it fell back to find support this time at 1.2030. On Wednesday the support became 1.2040. The ascending lows show a certain upward bias in the pair. The price faces strong resistance to the upside below 1.2100. In case of exceeding this barrier, it could extend the upward path.
The stability of the dollar in the last hours, with a slight rebound of the DXY gave momentum to the USD / CAD. Treasury bond yields stopped falling, contributing to such stability. Oil prices remain unchanged.
One factor to take into account is the strong fall of the CAD against the AUD and especially the NZD. The “hawkish” tone of the Reserve Bank of New Zealand triggered a strong rally in the NZD / USD, which also drove the AUD / USD higher, but it did not do the same with the CAD against the dollar. The reason may be that the Bank of Canada aimed to be among the first to adjust, which had been driving the Canadian currency since the end of February and that situation has disappeared or at least the differential has narrowed, for now, only in front of the RNBZ.
Technical levels
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