FxWirePro: USD/CAD bullish outlook with scope to target 1.3700 levels
USD/CAD rose sharply towards 1.3600 levels on Tuesday after the United States said it would impose preliminary anti-subsidy duties averaging 20 percent on imports of Canadian softwood lumber. The move sets a tense tone a…
USD/CAD rose sharply towards 1.3600 levels on Tuesday after the United States said it would impose preliminary anti-subsidy duties averaging 20 percent on imports of Canadian softwood lumber.
The move sets a tense tone as the two countries and Mexico prepares to renegotiate the 23-year-old North American Free Trade Agreement.
Recent weakening in the price of oil, one of Canada's major exports, also added to pressure on the loonie amid doubts about the Organization of the Petroleum Exporting Countries' ability to reduce global crude inventories.
Currently, the pair is trading at 1.3580 levels, it is set to advance future towards 1.3650 and later 1.3700 levels in the short term.
To the upside, the strong resistance can be seen at 1.4007, a break above will take the pair towards next resistance level at 1.4064.
To the downside immediate support can be seen at 1.3972 levels, a break below will open the door towards next level at 1.3930.
