The dollar moved higher against the Loonie, rising 0.45% after rising 0.8% last week. Yields moved higher on Monday as President Biden renominated Federal Reserve Chief Jerome Powell due a second term. The increase in yields helped the differential move in favor of the greenback, which buoyed the U.S. currency.
Technical analysis
The dollar moved higher and is poised to test trend line resistance near 1.28. Support is near the 10-day moving average, 1.2650. The 10-day moving average cross above the 50-day moving average, which means that a short-term uptrend is almost in place. Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal. The exchange rate is overbought with the fast stochastic printing a reading of 99, above the overbought trigger level of 80. Medium-term momentum has turned positive as the MACD (moving average convergence divergence) index is generated a crossover buy signal….
