FXStreet (Mumbai) – The bid tone in the USD/CAD pair improved during the European session, in line with the broad based weakness in the commodity currencies.
Rises above 1.2350
The pair extended the rally to trade above 1.2350. The Canadian dollar, along with the Aussie and the Kiwi has come under pressure in a move largely driven by a sharp sell-off in the Chinese equity markets. The resulting growth concerns are hurting the commodity currencies.
The loonie fell below its 100-DMA on Thursday after the rise above the same in the previous session. With a bearish undertone in the commodity currencies, the USD/CAD pair appears poised to test its 100-DMA located today at 1.2372.
USD/CAD Technical Levels
The pair currently trades at 1.2356, with the immediate resistance at 1.2372 (100-DMA), above which the gains could be extended to 1.24. On the flip side, a break below 1.2334 (hourly 100-MA) could push the pair down to 1.2299 (hourly 200-MA).
(Market News Provided by FXstreet)