The commodity-sensitive Canadian Dollar has been one of the top performing major currencies in recent weeks, on the back of the Bank of Canada tapering its Quantitative Easing program and moving forward rate hike expectations.
The USD/CAD exchange rate sliding just over 3% lower in the last six weeks. Canada is now vaccinating as many citizens a day, on a per-capita basis, as the UK and US.
These development could begin to take some shine of the Loonie’s recent run higher, and see its haven-associated counterparts peg back lost ground in the coming days. Disappointing employment data for April, scheduled for release on May 7, may intensify this downturn. 

USD CAD 20210504 12.04

From a technical perspective, the USD/CAD exchange rate could be poised to rebound higher in the near term, as price approaches key support at the 2018 low (1.2247).
Remaining constructively positioned above 1.2250 likely paves the way for price to retest former support-turned-resistance at the March low (1.2365). Hurdling that brings the February low (1.2468) into the crosshairs. If support gives way, a continued downside push to psychological support at 1.2200 is more than likely.

 

 

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