TODAY USDCAD UPDATE :USDCAD touches top of major channel below 1.3300, its highest since 2020 amid bearish oil/stronger USD.

TODAY USDCAD UPDATE

USD/CAD touches top of major channel below 1.3300, its highest since 2020 amid bearish oil/stronger USD

• USD/CAD gains strong follow-through traction on Friday and climbs to a 22-month high.
• Bearish oil prices undermine the loonie and offer support amid resurgent USD demand.
• The fundamental, technical backdrop supports prospects for a further appreciating move.

TODAY USDCAD UPDATE :The USDCAD pair prolongs this week’s strong rally from the vicinity of mid-1.2900s and gains strong follow-through traction on Friday. The momentum lifts spot prices to the highest level since November 2020, with bulls now eyeing to reclaim the 1.3300 round-figure mark, though long-term resistance at 1.3275 will need to be overcome before further gains can be expected.

Crude oil prices languish near the weekly low and undermine the commodity-linked loonie, which, in turn, acts as a tailwind for the USD/CAD pair. Apart from this, the emergence of fresh buying around the US dollar provides an additional lift to the major and contributes to the bullish momentum.

TODAY USDCAD UPDATE :Friday’s strong momentum could also be attributed to some technical buying following the overnight sustained strength and close above the 1.3200 round-figure mark. A subsequent move beyond the previous YTD peak could be seen as a fresh trigger and might have set the stage for further gains. Yet price has now reached a major trend line – the cieling of a multi-year rising channel that began back in April 2021 – and this is likely to act as a stopping point and resistance level, with bears mounting a defence. A daily close or open above the trend line, at around 1.3275 will be necessary to forecast further gains and bulls may wish to act with caution until it is fully in the rear-view mirror. 

Market participants now look forward to the Preliminary Michigan Consumer Sentiment Index from the US, due later during the early North American session. This, along with the US bond yields and the broader risk sentiment, will influence the USD and provide a fresh impetus to the USD/CAD pair.Confuse Which Broker is best ? , Here you can find the best regulated broker