The US Dollar to Canadian Dollar exchange rate, which currently stands at 1.33022, supports the breakout of the 21-day exponential moving average (EMA) to reach its highest point in three weeks. However, referring to Nehcap’s perspective, it is expected that there will be a limited increase in its value from this point.

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• USD/CAD justifies 21-EMA breakout to refresh three-week high.

The pair currently trades last at 1.33022.

The previous day high was 1.3293 while the previous day low was 1.322. The daily 38.2% Fib levels comes at 1.3265, expected to provide support. Similarly, the daily 61.8% fib level is at 1.3248, expected to provide support.

USD/CAD picks up bids to refresh the highest levels in three weeks around 1.3305 heading into Thursday’s European session.

In doing so, the Loonie pair takes clues from the market’s broad risk aversion which propels the US Dollar while weighing on the prices of commodities and antipodeans. It’s worth noting that the grim concerns about China, one of the world’s biggest commodity users exert additional downside pressure on the Oil Price, which in turn propels the major currency pair due to Canada’s reliance on energy export as the key earning source.

Also read: Asian stocks drop as S&P500 Futures slide to 4,470, US Treasury bond yields refresh three-month high

Technically, a clear upside break of the 21-Exponential Moving Average (EMA), around 1.3275 by the press time, joins the bullish MACD signals and upbeat RSI (14) line, not overbought, to propel the Loonie pair.

That said, lows marked during April and May near 1.3300 and 1.3315 restrict immediate upside of the USD/CAD pair ahead of the key 1.3360 resistance confluence comprising the 50-EMA and previous support line stretched from February.

On the flip side, pullback in the USD/CAD price remains elusive unless staying beyond the one-week-old rising support line, near 1.3245 at the latest.

Following that, the 1.3200 round figure and the latest multi-month low marked the last week around 1.3115 can’t be ruled out.

Trend: Limited upside expected

Technical Levels: Supports and Resistances

USDCAD currently trading at 1.3302 at the time of writing. Pair opened at 1.3281 and is trading with a change of 0.16% % .

The pair is trading above its 20 Daily moving average @ 1.3247, below its 50 Daily moving average @ 1.3402 , below its 100 Daily moving average @ 1.3491 and below its 200 Daily moving average @ 1.3507

The previous day high was 1.3293 while the previous day low was 1.322. The daily 38.2% Fib levels comes at 1.3265, expected to provide support. Similarly, the daily 61.8% fib level is at 1.3248, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.3236, 1.3192, 1.3163
• Pivot resistance is noted at 1.3309, 1.3338, 1.3382

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