“¢ A modest pull-back in oil prices undermined Loonie and helped regain positive traction.
“¢ Bulls seemed unaffected by a subdued USD price action, despite positive US bond yields.
The USD/CAD pair regained positive traction at the start of a new trading week, albeit remained well within last week’s broader trading range.
With investors looking past Friday’s hotter than expected Canadian consumer inflation figures, the pair built on its rebound from closer to weekly lows and traded with a mild positive bias through the early European session.
The up-move seemed unaffected by a subdued US Dollar price action, despite a follow-through uptick in the US Treasury bond yields, and rather took cues from a modest pull-back in crude oil prices.
After an initial uptick to 2019 highs, WTI crude oil was last seen trading lower by over 0.5%, which eventually undermined the commodity-linked currency – Loonie and turned out to be one of the key factors providing a minor lift to the major.
It, however, remains to be seen if the pair is able to build on the positive momentum or continues with its struggle to decisively make it through the 1.3300 handle amid absent relevant market moving economic releases and a bank holiday in the US.
Technical levels to watch
On a sustained move beyond the mentioned hurdle, the pair seems more likely to surpass last week’s swing high, around the 1.3315-20 area, and aim towards testing 50-day SMA, near the 1.3345 region. On the flip side, the 1.3240-30 region now seems to have emerged as immediate support, which if broken might turn the pair vulnerable to head back towards testing sub-1.3200 level, or 100-day SMA support.
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