The 27 February USDCAD Technical Analysis shows that the pair extended its overnight consolidative price-action and remained confined within a narrow trading range, below the 1.2700 handle. Learn More!
27 February, GKFX – On Monday, the pair once again failed to break through the very important 200-day SMA barrier and was capped by some renewed US Dollar weakness, amid subdued US Treasury bond yields.
The negative factor, however, was largely offset by retreating crude oil prices, which tends to undermine demand for the commodity-linked currency – Loonie and is now assisting the pair to gain some positive traction during the early European session.
US macro data/Powell’s testimony eyed for fresh impetus
Investors now look forward to the important US macro releases – monthly durable goods order data and Conference Board’s Consumer Confidence index for fresh impetus. This along with the Fed Chair Jerome Powell’s first testimony before the Congress might provide the required momentum to help to pair to breakthrough a four-day-old trading range.
27 February USDCAD Technical Analysis
The pair might continue to confront some fresh supply near the 1.2700 handle (200-DMA), above which a fresh bout of short-covering could lift it beyond YTD highs resistance near 1.2755 area towards 1.2795-1.2800 supply zone.
On the flip side, retracement slide below 1.2670-65 area (session low) is likely to get extended towards 100-day SMA support near the 1.2630-25 region, which if broken might turn the pair vulnerable to break below the 1.2600 handle and head towards testing 50-day SMA support near the 1.2535 region.
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