USD/CAD rebound from 2-week lows, lacks follow-through
Our preference: short positions below 1.3465 with targets at 1.3395 & 1.3370 in extension.Alternative scenario: above 1.3465 look for further upside with 1.3485 & 1.3520 as targets
• The USD finds some support amid a goodish bounce in the US bond yields.
• Weaker Oil prices undermine Loonie and helped limit any further downside.
• Traders now eye Powell’s scheduled speech for some meaningful impetus.
The USD/CAD pair now seems to have entered a bearish consolidation phase and was seen
oscillating in a narrow trading band near two-week lows.
The pair seesawed between tepid gains/minor losses through the early European trading session on Tuesday,
though a combination of supporting factors helped limit any further downside, at least for the time being.
The US Dollar attracted some buying interest amid a goodish rebound in the US Treasury bond yields and
was seen as one of the key factors lending some support.