Technical Bias: Slightly Bullish
- USDCAD tests 1.22; consolidates in mid-1.21 range.
- DXY rallies for the first time this week, reaching 95.26.
- Commodities decline across the board on Friday.
The USDCAD is ending the week on a high note, as broad support for the US dollar returned on Friday at the expense of commodities.
The USDCAD climbed to a more than one-week high, advancing more than 100 pips to 1.2204. The pair would subsequently consolidate at 1.2157, a gain of 0.75 percent. The USDCAD faces initial resistance at the daily high of 1.2204 and is supported at the psychological 1.2000 threshold, which is also the low from April 30.
In technical terms, the USDCAD has resumed its bullish bias, based on the 1-hour chart. The MACD and RSI are showing upward momentum in New York’s afternoon session.
The US dollar index rallied on Friday after seven consecutive losses. The DXY climbed 0.7 percent to 95.26.
Oil prices pared gains on Friday, but are well on their way for their fourth consecutive weekly advance. The price of Brent crude fell 1.1 percent or 73 cents to $66.05 a barrel at 13:58 ET. US benchmark West Texas Intermediate (WTI) for June delivery tumbled 1.5 percent or 88 cents to $58.75 a barrel.
Precious metals were down across the board. Gold futures fell 0.7 percent or $8.30 to $1,174.10 an ounce at 13:57 ET. Silver prices fell 0.3 percent or 5 cents to $16.11 an ounce. Platinum Spot plunged 1.5 percent or $16.88 to $1,128.75 an ounce at 14:21 ET.