- US Dollar strengthens and sends USD/CAD back above 1.2900.
- Weaker oil prices and higher US yields support upside.
USD/CAD rebounded during the US session on the back of a stronger US dollar, lower crude oil prices and higher US yields. The pair climbed to 1.2944 and it was trading at 1.2935, still lower for the day but far from the low, it reached earlier at 1.2898. The area around 1.2900 capped the downside and rebounded.
Crude oil prices were lower on Monday. The WTI was down 1.50% at $64.80 a barrel, lowest since April 10. While in the bond market, the 10-year yields rose to 2.937%, the highest in a week.
Concerns about trade tensions between the US and many countries continue to be watched closely by market participants. US data today (Factory Orders) had no impact on the pair. The key report of the week will be released on Friday: the Canadian employment report.
Technical levels
As mentioned, the correction from 1.3005 (Jun 1 high) was capped by the 1.2900 that has become the immediate support followed by 1.2870 and 1.2855. To the upside, a consolidation above 1.2950 would add positive momentum to the pair, exposing the next resistance at 1.2980. On a wider perspective, USD/CAD needs a consolidation on top of 1.3000 to clear the way to more gains.
Share
