- USD mixed despite US data, DXY index remains at daily highs
- CAD among the best of the day.
The pair USD / CAD moves slightly lower on Wednesday, with the CAD among the few currencies to strengthen against the USD. The pair bottomed out at 1.2386 after the start of the American session, and during the last hour, it has again rallied above 1.2400.
The pair’s rally came as the US dollar rallied across the board. At time of writing, the pair is trading near 1.1420, still negative on the day, but recovering from lows. USD is resuming its rally supported by higher US yields.
US economic data surprised to the upside with the CPI inflation rate reaching the highest level since 1990. On the other hand, another report showed that initial jobless claims fell to new pandemic lows.
Short term outlook
The bias in USD / CAD is still pointing to the downside. A recovery above 1.2450 would remove the bias, favoring a test of the weekly maximum in 1.2485. A consolidation below 1.2400 it should strengthen the negative tone. The next support is at 1.2365.
Conversely, the daily chart shows a USD / CAD rebounding from the 20-day moving average and maintaining a bullish outlook. The 200 day SMA at 1.2475 continues to limit the upside.
USD / CAD technical levels
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