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USDCAD rebounds toward last week’s high after stalling near support
The pair has risen to 1.4112, just 4 pips below last week’s high at 1.41166, as U.S. Treasury yields stabilize and support a broader U.S. dollar recovery.
USDCAD is modestly higher after sellers failed to extend an early breakdown, with the move stalling near key support before buyers stepped in. After slipping below its rising 100-hour moving average at 1.40874, the pair fell to a low of 1.4071, just above the 200-hour moving average level around 1.4064, before rebounding.
The recovery has lifted USDCAD to 1.4112, putting it within 4 pips of last week’s high at 1.41166. That price area is also aligned with the July 10 swing low, which has now flipped from prior support to resistance, and a break and hold above 1.41166 would be needed to strengthen the bullish case.
If buyers push past 1.41166, attention would shift to the next resistance zone between 1.4130 and 1.41488. Forexlive also linked the intraday rebound to a modest rebound in U.S. Treasury yields during the North American session, helping the U.S. dollar recover more broadly.
Forexlive noted the 2-year Treasury yield is down 0.8 basis points at 4.322% and the 10-year yield is lower by 2.8 basis points, trading at 4.6507%. It also pointed to lower oil prices and trade tension between the United States and Canada as additional dynamics that could weigh on the Canadian dollar versus the U.S. dollar.