USD/CAD set to test April lows at 1.2265 amid WTI rally, ahead of US data

The relentless rise in WTI prices offset the US dollar’s advance.
USD/CADUSD/CAD is looking to challenge the April low of 1.2265, because the risks remain to the downside amid a rally in WTI prices.

The US oil sits at two-month highs of $66.63, because the sentiment has turned bullish on expectations of a faster vaccine-driven global economic recovery, which is probably going to spice up the fuel demand.

Meanwhile, the relentless surge in oil prices appears to negate the effect of a broadly firmer US dollar, exerting persistent downward pressure on the spot.

Next of note for the main remains the US ADP and ISM Services PMI reports. within the meantime, the oil price dynamics will still play out.

USD/CAD: Technical Outlook

USD/CAD: Hourly chart

USD/CAD’s hourly chart shows that the worth is attempting a minor bounce after having breached the two-day ascending trendline support at 1.2285.

The Relative Strength Index (RSI) has turned flat but trades at 38.58, implying that deeper losses remain on the cards.

Therefore, the April month low remains in danger , below which the psychological 1.2250 level will inherit the image .

Note that the spot is trading below all the main averages on the given time-frame .

Alternatively, buyers got to reduce above the trendline support now resistance at 1.2286 to increase the recovery momentum towards 1.2300.

USD/CAD: Additional levels
USD/CAD
OVERVIEW
Today last price 1.2285
Today Daily Change -0.0026
Today Daily Change % -0.21
Today daily open 1.2311

TRENDS
Daily SMA20 1.2463
Daily SMA50 1.253
Daily SMA100 1.2634
Daily SMA200 1.2892

LEVELS
Previous Daily High 1.2352
Previous Daily Low 1.2276
Previous Weekly High 1.2491
Previous Weekly Low 1.2266
Previous Monthly High 1.2654
Previous Monthly Low 1.2266
Daily Fibonacci 38.2% 1.2323
Daily Fibonacci 61.8% 1.2305
Daily Pivot Point S1 1.2274
Daily Pivot Point S2 1.2237
Daily Pivot Point S3 1.2198
Daily Pivot Point R1 1.235
Daily Pivot Point R2 1.2388
Daily Pivot Point R3 1.2425

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