USD/CAD Price Analysis: Beaver Targets 1.2500 Resistance Point

The US Dollar is outperforming several major currencies today, including the Canadian Dollar. The USD/CAD pair has been rallying since the market opened a few hours ago, and it could top 1.2500 before the market closes.

USD/CAD Pair Surpasses The 1.2400 Resistance

The USD/CAD pair, often called the Loonie or Beaver, is posting modest gains so far today. The Greenback’s renewed strength preserved the pair’s bullish momentum after a quiet performance yesterday.

As of writing, the USD/CAD pair broke past the 1.2400 resistance point earlier today and is heading towards the 1.2500 region. The rally means that the US Dollar is up by 1.23% against the Canadian Dollar in the past few hours.

The Canadian Dollar wasn’t helped by falling crude oil prices. Brent Crude is down by 3.38% so far today and is currently trading above $74 per barrel. The West Texas Intermediate (WTI) is also down by 3.82% over the past few hours, trading around $72 per barrel.

Greenback Soars Despite Disappointing PMI Data

Yesterday, crude oil prices surged after OPEC+ decided to postpone its meeting. The move left the group’s oil output unchanged. However, the positive impact from this development is now lost, with investors moving to the sidelines to await fresh developments regarding OPEC+ and its output strategy.

The news allowed the Greenback to put pressure on the CAD today. The Services PMI for June was 60.1, down by 3.9% from the 64 recorded in May. This is the 13^th-consecutive month the index is growing at a slower rate.

Despite the poor PMI data from the United States, the Greenback continued its rally and set an intraday high above 1.2480. The USD/CAD pair is struggling to break past the 1.2500 resistance point. With no fresh data coming from the market at the moment, the pair could enter a consolidation phase. The PMI data from Canada and the FOMC Minutes would play big roles in how the pair perform tomorrow.