USD/CAD Pair Seeks Support Above 23.6% Fibonacci Retracement Level
The USD/CAD pair has been showing signs of recovery after hitting a three-month low at 1.3730 last week.
The US Dollar (USD) is gaining traction due to inflation risks stemming from volatile energy prices and geopolitical uncertainties, particularly the US-Iran standoff, which are acting as a tailwind for the safe-haven Greenback.
A modest downtick in crude oil prices and the deepening US-Canada trade war are also undermining the commodity-linked Loonie, lending additional support to the USD/CAD pair.
From a technical perspective, an intraday move above the 23.6% Fibonacci retracement level of the June-August decline could be seen as a key trigger for bullish traders.
The Relative Strength Index (14) is hovering near 62 and Moving Average Convergence Divergence (MACD) readings are staying in positive territory, indicating that buyers are attempting to stabilize the USD/CAD pair after its recent pullback.