USD/CAD is showing a local reversal amid a decrease in commodity prices and the risk of the global economy falling into a deep recession. The shift of market sentiment has led to the rise in dollar demand, and that is the reason why the pair is growing. The sharp decline in oil prices also contributed to the increase of the pair.
Technical picture:
The quote is above the middle line of the Bollinger indicator, above the SMA 5 and SMA 14. The moving averages have crossed and give a signal to buy, while the relative strength index (RSI) is below 50% and is rising steadily. The stochastic indicator is entering the overbought zone.
Possible dynamics:
Growth and consolidation of the pair above 1.2685 may lead to an increase to 1.2785.
