USDCAD developed an upbeat momentum yesterday and is currently extending gains on the back of falling oil prices amid escalating COVID cases in China, fears of further interest rate hikes, and ample Russian supply. The US dollar has renewed its strength and gained traction amid a risk-aversion sentiment. A major spotlight is the Canadian GDP which is expected to improve by 0.1% MoM. The US dollar will focus on the release of US consumer confidence. Better-than-expected figures could lift the commodity asset further.
The pair has rallied from its local lows and is consolidating above the 10MA. The price is trading near 1.3450 supported by a bullish RSI which gives hope to further gain. MACD is preserving a poor sell signal. Stochastic remains in the neutral zone awaiting signs that trigger the instrument further in the ultra-short term. A rise above 1.3470 will extend the bullish trend toward 1.3504. A breakthrough here will target 1.3570. On the flip side, a fall below 1.3405 will extend the move toward 1.3334 and open the door toward 1.3260.
Key levels to watch from the upside 1.3470, 1.3504, 1.3570– from the downside 1.3405, 1.3334, 1.3260.