USD/CAD rises above 1.2900, eyes Monday’s highs

• DXY prints fresh gains above 90.50, USD/CAD, rises for the third day in a row.
• Volatility in FX markets rises as Wall Street remains sideways.

The USD/CAD climbed to 1.2933, reaching a fresh daily high. The move took place amid a stronger US dollar across the board. The greenback is recovering after falling sharply during Monday’s American session.

The greenback gained momentum even as equity prices in Wall Street remains sideways, on a quiet session. Volatility in FX markets rose during the last hours with the appreciation of the dollar. The DXY printed fresh daily highs at 90.63, remains, like USD/CAD below Monday’s highs.

Technical outlook

As of writing, USD/CAD trades at 1.2915, 60 pips above yesterday’s close. It is approaching the weekly high at 1.2957.  The chart continues to point to the upside from a technical perspective. A key support is seen at 1.2815/20, the convergence of the 20 and 100 moving averages in the 4-hour chart.

Technical levels