USD/CAD conquers 50-DMA, inching towards 1.3000 level

By FXStreet Strong bid tone in the US Dollar has now lifted the USD/CAD pair beyond 50-day SMA and the pair is currently trading at 1.2970, high point of the day.

Tuesday’s upbeat US CPI, industrial production data and some hawkish comments from FOMC members increased possibilities of June Fed rate-hike three-fold from 4% to 12% and extended support to the greenback.

Later during the NY session, the FOMC April meeting minutes will be the key highlight from today’s economic events. Investors will pay attention to the EIA’s official crude oil inventories data, which has the potential to trigger some volatility in crude oil prices and eventually in the USD/CAD pair.

From technical perspective, the pair had been facing stiff resistance at 50-day SMA region and hence, a clear break-through would bring renewed buying interest in the pair.

Technical levels to watch

From current levels, the pair seems to immediately aim towards reclaiming 1.3000 psychological mark, which if conquered would open room for further near-term recovery for the pair. Above 1.3000 handle, the pair seems to extend the ongoing recovery trend towards April daily closing highs resistance near 1.3145-50 region.

On the downside, 50-day SMA near 1.2930 now seems to have turned as immediate support. …read more

Source:: FX Street