- Loonie unable to hold gains against US dollar.
- DXY Strengthens Amid Risk Aversion, Rising US Yields
- Commodity price correction weighs on CAD, AUD and NZD.
The USD/CAD turned higher during the US session and hit a fresh daily high at 1.2772. Previously he bottomed out at 1.2683. The pair rose almost a hundred pips as the US dollar gained momentum amid a reversal in commodity prices.
Risk aversion continues to dominate the mood in financial markets. The dollar gained momentum in recent hours on the recovery in equity prices and also amid a drop in commodity prices, reversing the initial rally.
The Canadian dollar did not benefit earlier on Monday from higher crude oil prices against the AUD and NZD. More recently, in the US time, the CAD regained momentum pushing NZD/CAD and AUD/CAD into neutral territory. The Canadian dollar rose on risk aversion rather than higher crude oil prices.
The key factor remains the war in Ukraine and the response of the United States and its allies. The Biden administration seeks to ban imports of Russian oil. The announcement sent crude prices to new highs since 2008.
levels to see
USD/CAD is approaching the 1.2800 area again, a key resistance. A daily close above should point to more gains. Next resistance levels could be located at 1.2835 and 1.2875 (February high).
If the pair remains below 1.2800, a correction back to 1.2700 seems possible. Below key support lies at 1.2665; a break lower would expose 1.2630 and then the February low at 1.2585.
Technical levels
Source: Fx Street
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
