USD/CAD - Two-day rally stalls at 38.2% Fib

The bullish move in the USD/CAD pair failed to chew through 1.3209 (38.2% of 1.3598-1.2968) despite the losses in the oil prices. 

The spot clocked a high of 1.3212 in the overnight trade before retreating to 1.3175 levels. 

What’s next?

The spot jumped close to 200 pips in the last two days on account oil price sell-off and broad based US dollar rally. 

However, Fed’s Harker’s comments failed to boost the treasury yields and that seems to have taken a wind out of the dollar bulls in Asia. Consequently, the USD/CAD backed-off from 1.3209 to 1.3175 levels. 

The pair remains the mercy of the action in the oil prices, given the thin US, Canada data calendar. 

USD/CAD Technical Levels

Breach of support at 1.3169 (Jan 30 high) would 200-DMA level of 1.3130, under which the psychological level of 1.31 could be put to test. On the higher side, 1.3209 (38.2% fib) could offer resistance, which, if breached would signal continuation of the two-day rally. The spot could test 1.3253 (50-DMA) and 1.3279 (100-DMA).