A combination of supporting factors assisted USD\/CAD to regain positive traction on Monday. Sliding crude oil prices undermined the loonie and extended support amid modest USD strength. The technical set-up favours bullish traders and supports prospects for additional near-term gains.
The USD\/CAD pair held on to its strong intraday gains through the early North American session and was last seen trading around the 1.2610 region, near the multi-week high touched on Friday.
Crude oil prices dropped to the lowest level since March 17 and undermined the commodity-linked loonie. This, in turn, was seen as a key factor that offered some support to the USD\/CAD pair amid the underlying bullish sentiment surrounding the US dollar.
Despite the supporting factors, bulls, so far, have struggled to make it through the very important 200-day SMA. The said barrier has been capping the USD\/CAD pair over the past three trading sessions and coincides with a descending tren-line support breakpoint.
Oscillators on the daily chart have just started gaining positive traction and support prospects for an eventual breakout through the aforementioned confluence. The USD\/CAD pair could then climb to mid-1.2600s, or the 50% Fibonacci level of the 1.2901-1.2403 fall. Some follow-through buying will suggest that the USD\/CAD pair has formed a temporary bottom near the 1.2400 mark and pave the way for additional gains. The momentum could then push spot prices towards the 1.2700 mark en-route the 61.8% Fibo. level, around the 1.2715 region.
On the flip side, the 1.2555 region now seems to protect the immediate downside ahead of the 23.6% Fibo. level, around the 1.2525 region. A convincing breakthrough, leading to subsequent weakness below the 1.2500 psychological mark, will shift the bias in favour of bearish traders. The USD\/CAD pair would then turn vulnerable to slide back to challenge the YTD low, around the 1.2400 mark, with some intermediate support near the 1.2465 zone.<\/p>\n","protected":false},"excerpt":{"rendered":"
A combination of supporting factors assisted USD\/CAD to regain positive traction on Monday. Sliding crude oil prices undermined the loonie and extended support amid modest USD strength. The technical set-up favours bullish traders and supports prospects for additional near-term gains.The USD\/CAD pair held on to its strong intraday gains through the early North American session …<\/p>\n","protected":false},"author":13,"featured_media":61177,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[37,36],"tags":[7015],"class_list":["post-63672","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-forex-markets","category-market-updates","tag-usd-cad"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/63672","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=63672"}],"version-history":[{"count":2,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/63672\/revisions"}],"predecessor-version":[{"id":63676,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/63672\/revisions\/63676"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/61177"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=63672"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=63672"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=63672"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}