USD/CAD Price Analysis: Bulls are worried that US yields are at extremes
- USD/CAD bulls depend on ongoing moves in the US yields embarking on critical long-term levels.
- The week's highs in USD/CAD are eyed for the remaining stretch of the week.
USD/CAD bears are back in town, although judging by the eagerness of the US dollar bulls, perhaps not for much longer. The following illustrates the potential trajectory for the US dollar and CAD vs the greenback:
USD/CAD M15 chart
The week's template shows that the highs are within reach yup near 1.1399 the figure. A series of peak formations on the downside while the price edges higher could lead to a significant bullish move for the remaining days of the week following the peak low that was put in at the start of the week near 1.3656.
The outcome will most probably depend on the path of the Us yields and the greenback though and the following illustrates the bullish bias for both:
DXY, daily chart
The greenback has been a laggard behind US yields which are making marks on weekly highs on Thursday, however, the momentum is solid and a break into deeper bullish territory could be on the cards as per the 2-year and 10-year chart respectively:
As seen, both are on the right side of the trendlines for continuations.