USD/CAD Price Analysis: Renews multi-day top on firmer US Dollar, Oil’s retreat, 1.3360 in focus
- USD/CAD justifies 21-EMA breakout to refresh three-week high.
- Risk-aversion, hawkish Fed bets underpin US Dollar run-up, weigh on Oil price.
- Upbeat oscillators suggest further upside towards 50-EMA, support-turned-resistance line confluence.
- Mid-tier US, Canada statistics eyed for clear directions past 1.3360.
USD/CAD picks up bids to refresh the highest levels in three weeks around 1.3305 heading into Thursday’s European session.
In doing so, the Loonie pair takes clues from the market’s broad risk aversion which propels the US Dollar while weighing on the prices of commodities and antipodeans. It’s worth noting that the grim concerns about China, one of the world’s biggest commodity users exert additional downside pressure on the Oil Price, which in turn propels the major currency pair due to Canada’s reliance on energy export as the key earning source.
Also read: Asian stocks drop as S&P500 Futures slide to 4,470, US Treasury bond yields refresh three-month high
Technically, a clear upside break of the 21-Exponential Moving Average (EMA), around 1.3275 by the press time, joins the bullish MACD signals and upbeat RSI (14) line, not overbought, to propel the Loonie pair.
That said, lows marked during April and May near 1.3300 and 1.3315 restrict immediate upside of the USD/CAD pair ahead of the key 1.3360 resistance confluence comprising the 50-EMA and previous support line stretched from February.
On the flip side, pullback in the USD/CAD price remains elusive unless staying beyond the one-week-old rising support line, near 1.3245 at the latest.
Following that, the 1.3200 round figure and the latest multi-month low marked the last week around 1.3115 can’t be ruled out.
USD/CAD: Daily chart
Trend: Limited upside expected