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USDCAD rebounds from 20-DMA amid risk-off markets

Long
FX:USDCAD   U.S. Dollar / Canadian Dollar
Risk appetite sours during early Wednesday, underpinning the US dollar’s safe-haven demand ahead of the key US Durable Goods Orders. The greenback rebound triggers the USDCAD pair’s U-turn from 20-DMA. Given the firmer RSI and sustained trading beyond 200-DMA, not to forget the latest bounce off the immediate moving average, the Loonie pair is up for further advances towards July’s top surrounding 0.2810. However, 1.2670 and 1.2750 may challenge the bulls on the way to 1.2810. In a case where the pair buyers remain dominant past 1.2810, the monthly top near 1.2950 and the 1.3000 psychological magnet will be in focus.

Meanwhile, a daily closing below 20-DMA level of 1.2575 will have a bumpy road as 200-DMA and an ascending support line from June 23, respectively around 1.2550 and 1.2530, will challenge the USDCAD sellers afterward. If at all the pair bears conquer the 1.2530 trend line support level , June’s high of 1.2485 and July’s low near 1.2420 will be in focus. It should be noted that the cautious sentiment ahead of this week’s Jackson Hole Symposium and virus-led pessimism favor USDCAD bulls.

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