- USD/CAD has recovered from the session low of 1.4169 to levels above 1.52.
- The daily chart shows scope for a stronger rally toward 1.43.
USD/CAD is currently trading largely unchanged on the day near 1.4205, having hit a low of 1.4169 an hour ago.
The bid tone around the Canadian dollar (CAD) has weakened, possibly due to West Texas Intermediate’s pullback from the high of $14.19 to $11.70. The black gold, however, is still trading 1.12% higher on the day.
The USD/CAD looks set to gain further ground, as the daily chart is reporting a higher low, higher high setup. More importantly, Tuesday’s 0.43% rise validated or reinforced the bullish view put forward by the big green marubozu candle created on Monday. Further, the 5- and 10-day averages are now trending north, indicating a strengthening of upward momentum.
The spot could rise to the psychological hurdle of 1.43 in the short-term. A violation there would expose the March high of 1.4667.
The bullish view would be invalidated below Monday’s low of 1.4014.
Daily chart
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Trend: Bullish
Technical levels
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