U.S. dollar moved higher ahead of the long weekend as demand for safe-haven assets increased.
USD/CAD managed to settle below the support at the 20 EMA as oil markets tested weekly highs.
The Canadian dollar strengthened for a third straight day against its U.S. counterpart on Tuesday as the easing of COVID-19 restrictions in China bolstered investor sentiment. Global shares were higher and the price of oil, one of Canada's major exports, rose following China's decision to ease some quarantine requirements for international arrivals, a move that raised hopes for stronger growth and a revival in demand for commodities. U.S. crude prices advanced 1.3% to $110.98 a barrel, while the Canadian dollar was trading 0.3% higher at 1.2844 to the greenback, or 77.86 U.S. cents.