- The Loonie would finish the week with losses above 2%.
- A dismal sentiment weighed on risk-sensitive currencies like the Canadian dollar.
- USD/CAD Price Analysis: A daily close above 1.3300 could pave the way towards 1.3400.
The USD/CAD rallied to a nearly two-year high at around 1.3307, a level last seen in November 2020, spurred by a risk-off impulse as investors worried about an aggressive Federal Reserve hike that could tap the US economy into a recession. At the time of writing, the USD/CAD is trading at 1.3293, above its opening price by 0.51%.
USD/CAD PRICE ANALYSIS: TECHNICAL OUTLOOK
The Loonie weakened vs. a solid greenback, piercing the 1.3300 mark briefly during the North American session. Given that the USD/CAD began trending up in April of 2021, the major might continue to extend its gains. Once achieving a daily close above the 1.3300 figure, the following target would be October 29, 2020, a daily high, at around 1.3390. Once cleared, it would expose the September 2020 highs at 1.3418.
Near term, the USD/CAD is poised to the upside, even though it retreated from above the 1.3300 figure. Worth noting that the 20-EMA at 1.3267 capped the retracement; since then, the pair recovered towards the R2 daily pivot at 1.3295. A breach of the latter will re-expose the YTD high at 1.3307, which, once cleared, would open the door toward the R3 pivot point at 1.3347, ahead of the R4 daily pivot at the 1.3400 mark.
