- USD/CAD reverses on Monday and rebounds from monthly lows.
- US Dollar Index finds support amid higher US yields.
The USD/CAD pair bottomed earlier at 1.2469, the lowest level since March 19, and then turned sharply to the upside, rising more than sixty pips during the American session. Recently it peaked at 1.2539. It is hovering around 1.2535, up 30 pips for the day.
The loonie is among the worst performers of the American session across the board. It hit fresh lows versus its main rivals. At the same time, the greenback trimmed losses supported by higher US yields. The 10-year yield climbed to 1.613%, the highest since April 15.
Range with a bearish bias
The USD/CAD continues to move with a bearish bias even after today’s rebound. The pair is back into the recent range after being unable to hold under 1.2500. On the upside, it is finding resistance at 1.2560 and the 20-day moving average.
A close well under 1.2500 would open the doors for further losses, while above 1.2560 would expose the 1.2600. The next resistance is seen at April highs at 1.2635.
Technical levels
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