USD/CAD Price Analysis: Rebounds towards 1.2750 amid an impending bull cross
- USD/CAD consolidates the rebound below 1.2750 amid Kremlin comments.
- The oil price recovery, US dollar’s weakness make it a tough ask for bulls.
- Daily technical indicators point to upside risks for the major.
USD/CAD is recovering from daily lows of 1.2722, although trades below 1.2750, with the rebound fading amid persisting risk-on market profile.
In the last hour, the upbeat market mood cooled off a bit after Kremlin came out with a statement, citing that there are no concrete plans yet of a Putin-Biden meeting.
The proposed diplomatic talks between the US and the Russian leaders this week were the main reason behind the sudden lift to the market sentiment, earlier on.
With the White House officials confirming the meeting, however, investors still remain hopeful of de-escalation through the diplomacy of the Ukraine crisis, keeping the risk sentiment fairly stable and the greenback still undermined. The renewed uptick in WTI prices also caps the rebound in the USD/CAD pair.
Technically, USD/CAD needs to find acceptance above the 1.2750 psychological barrier to extend the recovery momentum towards the February highs of 1.2789.
The 14-day Relative Strength Index (RSI) is pointing lower but holds above the midline, keeping buyers hopeful.
Further, adding credence to the bullish view, the 21-Daily Moving Average (DMA) is set to cut the horizontal 50-DMA for the upside, signaling a bull cross.
USD/CAD: Daily chart
On the flip side, strong support is seen at the 21 and 50-DMAs confluence of 1.2707, below which the recent range lows near 1.2670 will be put to test.
Further south, the critical horizontal 100-DMA support at 1.2626 will come to the rescue of bulls.
USD/CAD: Additional levels to consider