- US dollar losses momentum during the last hour, holds onto daily gains.
- USD/CAD remains under 1.2400, bias points to the upside.
The USD/CAD rose further amid a stronger US dollar across the board and reached at 1.2397, the highest level in a week. Afterward pulled back and it is hovering around 1.2380, up 50 pips for the day, about to post the second daily gain in a row.
The greenback is among the top performers on Tuesday. It was already higher before the release of better-than-expected consumer confidence data. US yields spiked supporting the dollar but then pulled back. The DXY is at 92.00, off highs but still on its way to the second-highest daily close since May.
End-of-month flows and incoming US employment data are events that could trigger more volatility in the market ahead.
The bias in the short-term favors the upside. The immediate resistance is the 1.2400 area. A break higher could lead to more gains, particularly if consolidates above 1.2410. The next resistance stands at 1.2435.
On the flip side, support is seen at 1.2350. A slide under 1.2340 would weaken the greenback and below 1.2320, the outlook would favor more losses, exposing 1.2300,
