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USD/CAD rebounds near 1.3873 as sticky US inflation boosts the dollar
The pair bounced off 1.3833, extending a recovery from the August 21 swing low at 1.3730, while RSI stays below 50 but is rising.
USD/CAD rebounded on Wednesday, bouncing off daily lows near 1.3833 and rising about 0.26% to trade around 1.3873, according to FXStreet.
FXStreet said the move was driven by sticky US inflation data that pushed the dollar to new weekly highs, helping USD/CAD recover from its August 21 swing low at 1.3730.
Technical analysis in the report showed momentum remains bearish, with the Relative Strength Index still below its 50 neutral level but trending upward. It noted the pair could consolidate before any renewed move lower.
For levels, FXStreet pointed to 1.3900 as the next upside target, with the 100 day simple moving average at 1.3914 above it and near term resistance around 1.3950 and 1.4000. On the downside, it cited the 200 day simple moving average at 1.3844 first, followed by 1.3800 and then the 1.3730 cycle low.