USD/CAD rockets towards 1.3500 on WTI failing below technical support

Currently, USD/CAD ​​​​​​​ is trading at 1.3488, up 0.54% on the day, having posted a daily high at 1.3496 and low at 1.3396.

USD/CAD has rallied on the back of a drop in the price of WTI, falling below the 200 smoothed sma on the 4hr charts and ascending support line. We are still in an environment of broad-based USD strength as well ahead of the nonfarm payrolls this Friday, on the back of a solid ADP report today ad while markets continue to price in a March rate hike by 100%.

WTI under heavy pressure, $51 in sight

Just a reason or two to short the 'March rate hike herd'

Analysts at Scotiabank explained that they maintain a bearish CAD outlook (bullish USDCAD, targeting 1.40 for end Q2) and note the considerable vulnerability to sentiment and positioning given remarkably low levels of implied CAD volatility  nd extended (multi-year highs in) bullish CAD CFTC positions."

USD/CAD levels

USD/CAD has rallied through levels last seen in early January. "The technical picture is broadly bullish with and RSI at 70, bullish DMI’s, and an ADX that appears set to push into trend-confirming territory above 25. We note the absence of significant resistance ahead of 1.36 and look to near-term support at 1.3380," argued the analysts at Scotiabank.