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USD/CAD Price Analysis: Rises back to 1.46, eyes fresh four-year highs

  • USD/CAD remains bid with the USD drawing haven bids. 
  • The 4-hour chart indicates scope for a continuation of the ongoing rally.

USD/CAD reversed higher from 1.4424 in early Asia and is currently probing the psychological resistance of 1.46. The American dollar is scoring gains against majors, possibly on haven demand amid persistent coronavirus fears. 

The consecutive long-tailed 4-hour candles created during the overnight trade represent strong dip demand and suggest scope for a break above Wednesday's high of 1.4650. That would be the highest level since January 2016. 

The case for a notable pullback would strengthen if the spot finds acceptance under 1.4349, invalidating the bullish bias signaled by the long-tailed 4-hour candles. That could happen if oil prices see a notable price recovery. WTI oil is currently trading near $23.30, having hit a low of $20.50 on Wednesday. 

4-hour chart

Trend: Bullish

Technical levels

 

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