- The COVID-19 NU variant found in South Africa, spurred a sell off of assets with the word “risk” attached, boosting safe haven currencies.
- USD / CAD is up sharply, over 1%, amid risk-off sentiment.
- USD / CAD: A break above 1.2800 could expose a move towards the yearly high at 1.2948.
The USD / CAD recovers due to market participants’ concerns regarding the new COVID-19 variant found in South Africa, advanced 1.01%, trading at 1.2777 during the American session at the time of writing. Market sentiment has been the driver for the session, with the UN COVID-19 variant found in South Africa appearing to have more mutations, evading vaccines. Countries like the UK, Singapore, and Israel included some African nations on their red list. In addition, Japan imposed stricter border restrictions.
In the overnight session, amid tight liquidity conditions, due to a shorter US session, volatility increased in the pair, which closed near 1.2649 on Thursday. News of the NU COVID-19 variant spurred the rally, which passed all daily pivot levels on its way north, trading at new two-month highs, approaching 1.2800.
USD / CAD Price Forecast: Technical Outlook
The USD / CAD pair is accelerating the bullish move. On the way to the upside, it broke the resistance at 1.2774, leaving the yearly high of 1.2948 as the last line of defense for the USD / CAD bears. However, under overbought conditions, the Relative Strength Index (RSI) at 73 suggests that the pair could consolidate before USD / CAD traders can determine where the pair will head.
In the continuation of the bullish movement, the first resistance would be the psychological level 1.2800. A break in the latter would expose crucial supply zones, with the September 20 high at 1.2895, followed by the August 20 cycle high at 1.2948.
On the other hand, the September 29 support at 1.2774 would be the first support. A breakout of that level would expose the psychological level of 1.2700, followed by the November 25 high of 1.2676.
Technical levels
USD / CAD
Panorama | |
---|---|
Today’s Last Price | 1.2767 |
Today’s Daily Change | 0.0119 |
Today’s Daily Change% | 0.94 |
Today’s Daily Opening | 1.2648 |
Trends | |
---|---|
SMA of 20 Daily | 1.2531 |
SMA of 50 Daily | 1.2534 |
SMA of 100 Daily | 1.2563 |
200 SMA Daily | 1.2471 |
Levels | |
---|---|
Daily Previous Maximum | 1.2677 |
Daily Previous Minimum | 1.264 |
Weekly Preview Maximum | 1.2663 |
Weekly Prior Minimum | 1.2493 |
Monthly Previous Maximum | 1.2739 |
Minimum Previous Monthly | 1.2288 |
Daily Fibonacci 38.2% | 1.2655 |
Daily Fibonacci 61.8% | 1.2663 |
Daily Pivot Point S1 | 1.2633 |
Daily Pivot Point S2 | 1.2619 |
Daily Pivot Point S3 | 1.2597 |
Daily Pivot Point R1 | 1.267 |
Daily Pivot Point R2 | 1.2692 |
Daily Pivot Point R3 | 1.2707 |
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