The USD/CAD Rose but Remain Rangebound

• The dollar index continued to receive a safe-haven bid.
• S. yields moved higher, giving the greenback a lift
• Risk assets came under pressure as the war dominated the headlines
• Commodity prices were mixed with oil, gold, and nickel leading the charge

The dollar increased, gaining traction against the loonie and rising against most major currencies. Geopolitical risks helped the dollar but treasury investors sold ahead of the Fed next week, buoying U.S. yields. Congress is poised to pass a resolution where the U.S. would not trade Russian goods. This scenario includes oil. Germany cannot afford to shun Russian oil as most of its imports come from aggressors.

Most of the day, riskier assets were under pressure, as equity prices worldwide declined. The commodity space saw Russian exported products surge in value led by gains in oil, nickel, and palladium.

Technical Analysis

The USD/CAD rebounded on Monday but remain in a tight range. Support near the 10-day moving average that comes in near $1.2722. Resistance on the currency pair is seen near a downward sloping trend line that comes in near 1.2860. Short-term momentum is positive as the fast stochastic generated a crossover buy signal.

The medium-term momentum is positive as the MACD line generated a crossover buy signal. This scenario happens when the MACD line (the 12-day moving average minus the 26-day moving average) crosses the MACD signal line (the 9-day moving average of the MACD line). The MACD histogram prints positively. The trajectory of the MACD histogram is upward sloping, which likely points to upward prices.