FxWirePro: USD/CAD consolidating around 1.372, bias is bullish
The USD/CAD pair inched higher on Thursday as oil dipped and the greenback rallied on the back of the hawkish U.S. Federal Reserve statement, pushing oil co-related Canadian dollar lower. The U.S. central bank kept rates…
The USD/CAD pair inched higher on Thursday as oil dipped and the greenback rallied on the back of the hawkish U.S. Federal Reserve statement, pushing oil co-related Canadian dollar lower.
The U.S. central bank kept rates unchanged on Wednesday and downplayed weak first-quarter economic growth while emphasising the strength of the labour market, in a sign it was still on track for two more rate rises this year.
Oil fell to its lowest since late November on Thursday, as concern over rising global supply and stubbornly high inventories effectively wiped out most of the gains made since OPEC announced its first supply cut in eight years.
Short dip around 1.3650 should be viewed as buying opportunities, as the Canadian dollar is weaker against the US dollar in intraday trading.
The immediate support can be seen at 1.3678, break below this level will expose the pair to next support level at 1.3630.
Major resistance can be seen at 1.3800, break above this level will expose the pair towards 1.3885 levels.
