#USDCAD @ 1.34805 bulls step in to test key 1.35s. (Pivot Orderbook analysis)

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• USD/CAD bulls step in to test key 1.35s.
• WTI is supporting a recovery in an otherwise Us dollar bid environment.

The pair currently trades last at 1.34805.

The previous day high was 1.3468 while the previous day low was 1.3358. The daily 38.2% Fib levels comes at 1.3426, expected to provide support. Similarly, the daily 61.8% fib level is at 1.34, expected to provide support.

USD/CAD has been on consolidation in late North American trade while oil prices firm that has helped the Canadian dollar correct from its weakest level in more than two years. At the time of writing, the pair is up come 0.3% having traveled from a low of $1.3409 to a high of 1.3544 on the day.

The greenback has otherwise been supported by the Federal Reserve’s hawkish outlook for interest rates and after Russian President, Vladimir Putin ordered the country’s first mobilization since World War Two. On safe haven demand, DXY, which measures the currency against a basket of six counterparts hit a high of 111.814, the highest level since mid-2002.

A jump in oil followed news of China’s plans to ramp up its exports of refined products, as per Reuters news that said ”Chinese refiners are expecting the government to issue export quotas for 15-million tonnes of export quotas for refined products covering the remainder of the year as Beijing looks to bolster exports from the world’s No.1 oil importer.”

Additionally, there have been concerns over a disruption to oil markets caused by sanctions leveled against Russia. Russian president Putin said in a late Tuesday speech he planning to mobilize an additional 300,000 troops to bolster the country’s flagging war on Ukraine, where it has surrendered swathes of occupied territory in recent fighting, raising

Elsewhere, supporting the greenback, the Federal Reserve’s 75 basis-point increase to US interest rates on Wednesday remains an issue for the market, as the central bank looks to combat inflation by slowing the economy and reducing demand.

Next on the agenda, we have Canada’s retail sales data for July, due on Friday. This could offer markets more to go on as it assesses the Bank of Canada’s outlook on rates.

Technical Levels: Supports and Resistances

USDCAD currently trading at 1.349 at the time of writing. Pair opened at 1.346 and is trading with a change of 0.22 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.3145, 50 SMA 1.2995, 100 SMA @ 1.2926 and 200 SMA @ 1.2804.

The previous day high was 1.3468 while the previous day low was 1.3358. The daily 38.2% Fib levels comes at 1.3426, expected to provide support. Similarly, the daily 61.8% fib level is at 1.34, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.3389, 1.3318, 1.3279
• Pivot resistance is noted at 1.35, 1.3539, 1.361

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