USD/CAD reclaiming 1.2450

FXStreet (Edinburgh) - After bottoming out in the vicinity of 1.2400 the figure, USD/CAD managed to pick up pace and recover the 1.2440/50 band so far.

USD/CAD closer to 1.2500

The pair keeps the upbeat momentum intact with the psychological 1.2500 handle now at shouting distance. In the meantime, the ascent remains well bolstered by the dovish stance from the BoC and the USD dynamics, while market participants warm up for the next FOMC meeting on Wednesday.

In the opinion of analysts at TD Securities, the pair’s “rally is perhaps starting to run out of gas in the short run; a minor corrective dip—one that moves to fill the open gap between 1.2145/1.2245 on the hourly chart potentially—may be required to recharge the bull trend’s underlying dynamism”.

USD/CAD levels to consider

At the moment the pair is advancing 0.19% at 1.2447 with the next hurdle at 1.2500 (psychological level) ahead of 1.2507 (high Apr.21 2009) and then 1.2600 (psychological level). On the flip side, a breakdown of 1.2360 (low Jan.23) would open the door to 1.2315 (low Jan.22) and finally 1.2200 (psychological level).

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