- A sharp reversal in the US dollar sends the DXY back below 90.50.
- USD / CAD falls 60 pips from the rally, back to the 1.2700 zone.
The Canadian dollar rallied sharply against the US dollar during the US session and ahead of a long weekend. The USD / CAD it peaked at 1.2763 and then turned lower dropping more than 60 pips. It fell to 1.2702 and hovers around 1.2705 / 10, still up during the day, but now pointing lower.
The reversal came amid a big fall in the dollar. The DXY fell from four-day highs at 90.72 to 90.42, slashing all gains. US yields fell back from daily highs. The move took place before the London correction and triggered a sharp reversal in gold. Crude oil continues to rise and hit a new daily high. WTI stands at $ 58.76, up 1.60%, close to the recent peak.
Crude oil rally, dollar reversal pushed USD / CAD back below critical resistance near 1.2740 and it is now attempting to break below 1.2700. The pair is about to end the week with a negative tone.
Still, a weekly close clearly below 1.2670 appears necessary to open the door to new lows for the cycle. The rejection from above 1.2750 shows the dollar’s difficulties to make a recovery, confirming the current bearish bias.
Technical levels
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