USD/CAD fails to sustain Yellen-inspired gains

USD/CAD moved higher to a fresh 2-day high as the knee-jerk reaction to Fed’s Yellen hawkish remarks, but quickly turned lower and erased gains as the greenback pulled back across the board.

USD/CAD initially spiked to the 1.2950 zone, only to surrender gains, dropping more than a hundred pips in a matter of minutes to a low of 1.2830. A strong spike in oil prices also helped the loonie, although USD/CAD has returned to pre-Yellen levels and it was last at 1.2880, still down 0.29% on the day.

USD/CAD technical levels

As for technical levels, if USD/CAD breaks below 1.2830, next supports are seen at 1.2800 (psychological level) and 1.2763 (Aug 19 low) ahead of 1.2710 (Jun 24 low). On the other hand, resistances could be faced at 1.2948 (Aug 26 high), 1.2964 (Aug 22 high), 1.2990 (50-day SMA).