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USD / CAD extends bounce to new daily highs above 1.2730

  • USD / CAD gained momentum after breaking 1.2700 on Thursday.
  • The US Dollar Index is posting strong daily gains, approaching 90.00.

USD / CAD was relatively stable, trading around 1.2680 during the Asian session, but turned bullish on the previous US session, climbing above 1.2700. The price reached 1.2733, the highest level in two days before losing momentum. The pair is trading 1.2715 / 20, up nearly 50 pips on the day.

DXY Maintains Bullish Momentum Ahead of US Data

USD strength is widespread on Thursday and is driving USD / CAD higher. The yield on 10-year US Treasuries gained more than 8% on Wednesday, helping the greenback.

The incidents in the US Congress did not stop the rally on Wall Street, although they did moderate it. Today the loonie, despite the decline against the dollar, rises against the AUD and the NZD, which reflects some caution in the markets and the rise in the price of oil.

US data including jobless claims and ISM for services will be released on Thursday. The focus will also be on political issues. Foreign trade figures will be released in both the US and Canada.

From a technical point of view, the bearish bias in USD / CAD is still dominant, but the rebound is weakening the loonie. A consolidation above 1.2700 would point to consolidation ahead, with the next strong resistance being at 1.2770 and then 1.2830.

Technical levels

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