- USD strength, weaker oil drives USD/CAD back above 1.3000
- Focus on G7 meet and Canada’s jobs data for fresh direction.
The USD/CAD pair is seen extending its rebound into a third day today, as the bulls take on the 1.30 handle once again heading into the Day 1 of G7 Summit and Canada’s labor market report.
The spot stalled its Asian consolidation phase and broke to the upside in early Europe, mainly in response to increased demand for the US dollar, as markets prefer to hold the world’s reserve currency ahead of the G7 meeting, where the global trade and tariffs discussions are likely to be the main focal point.
Trump: European Union and Canada – Take down your tariffs and barriers
Meanwhile, amid cautious market environment, higher-yielding assets such as oil are seen taking a beating, which weighs negatively on the resource-linked Loonie, eventually adding to the bullish tone around the major.
Later today, the pair will take cues from any developments around the G7 meeting while the Canadian jobs data will also have a major impact on the prices.
USD/CAD Technical Levels
According to Yue Wang, Co-Founder at Forexsignal.guru, “USDCAD traded quietly in the wedge. Now price is above upper bands of both H1 and H4 timeframe. Medium term and long term trend still point up. No sell signal yet. But do not expect it directly break 1.3124 at current stage. We’ll look to trade short term extremes. Daily support levels: 1.2958 1.2927 1.2894 1.2879 1.2832. Daily resistance levels: 1.3016 1.3030 1.3056 1.3099.”
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