Archived Article This article was published more than 5 months ago. The market data, prices, forecasts, and analysis were accurate at the time of publication but may have changed since then. Please use this article for historical reference only and refer to our latest content for current market information.
- USD/CAD remains under pressure, even as it is trading in the green. Declining Treasury yields and rising crude oil prices are key drivers.
USD/CAD remains under pressure even as it started the new week in the green. As a key commodity currency, the Canadian dollar is finding strength in the rising crude oil prices. At the time of writing, WTI futures were up by 0.05% at $69.41. Earlier in the session, it hit a high of $70, which is its highest level since October 2018. Despite OPEC+ gradually increasing production, analysts are of the opinion that oil demand will surpass its supply later in the year.
USD/CAD is also reacting to the declining Treasury yields and improved risk appetite. At 90.15, the dollar index is finding resistance at 90.20. This is after the 10-year US bond yields dropped from 1.61 earlier on Monday to the current 1.57. Â
USDCAD technical outlook
USD/CAD is up by 0.06% at 1.2089 after hitting an intraday low of 1.2071. On a two-hour chart, it is trading along the 25-day EMA and slightly above the 50-day EMA. Besides, with an RSI of 50, the outlook is rather neutral.
I expect USD/CAD to rise further to 1.2100, where it will experience resistance. If the market lacks enough buyers to push the price past that level, it will probably be range-bound in the near term. If that happens, the borders of the horizontal channel will be 1.2100 and 1.2070. A move above 1.2100 or below 1.2057 will invalidate this thesis.
USD/CAD Chart
Follow Faith on Twitter.
