- The USD / CAD moves following the movements of the US dollar.
- Rising oil prices also limit the rally in USD / CAD.
- The focus remains on Powell’s testimony and the API crude inventory report.
The pair USD / CAD moves higher at the start of the European session on Tuesday, stopping just below the 1.2400 level. The bulls take a break ahead of Tuesday’s testimony from Fed Chairman Jerome Powell.
The Upbeat market mood weighs on US dollar safe-haven demand, which temporarily limits the rally of the USD.
On the other hand, Rising oil prices also threaten the pair’s recovery mode as it benefits the CAD, currency linked to the prices of raw materials. WTI prices reached the highest levels since October 2018 at $ 73.33, courtesy of uncertainty about the return of Iranian oil supply to the market.
All eyes remain now on the question and answer session with Jerome Powell during his testimony, as his prepared comments have already been released. Powell once again ruled out that inflation was transitory, while adding that it should return to the central bank’s 2% target once supply imbalances are resolved.
USD / CAD Technical perspectives
Given the strong momentum and the pair’s rebound from the key support zone, the USD / CAD may extend recovery moves towards the immediate obstacle of the 100-day SMA at 1.2420. Meanwhile, a break to the downside of 1.2350-25 can point to around 1.2270 before dragging the pair towards mid-May highs around the 1.2200notes Anil Panchal, an analyst at FXStreet.
USD / CAD additional levels
USD / CAD
| Panorama | |
|---|---|
| Today’s Last Price | 1.239 |
| Today’s Daily Change | 0.0029 |
| Today’s Daily Change% | 0.23 |
| Today’s Daily Opening | 1.2361 |
| Trends | |
|---|---|
| SMA of 20 Daily | 1.2152 |
| SMA of 50 Daily | 1.2233 |
| SMA of 100 Daily | 1.2424 |
| 200 SMA Daily | 1.2708 |
| Levels | |
|---|---|
| Daily Previous Maximum | 1.2487 |
| Daily Previous Minimum | 1.2353 |
| Weekly Preview Maximum | 1.2481 |
| Weekly Prior Minimum | 1.2128 |
| Monthly Previous Maximum | 1.2352 |
| Minimum Previous Monthly | 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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