The USD/CAD pair declined on Thursday as Canadian dollar strengthened as oil prices rose, while domestic data showed a solid gain for the country's exports. Canada's trade deficit almost doubled to C$1.09 billion in May …
The USD/CAD pair declined on Thursday as Canadian dollar strengthened as oil prices rose, while domestic data showed a solid gain for the country's exports.
Canada's trade deficit almost doubled to C$1.09 billion in May but in a sign of economic strength, both exports and imports reached record highs, Statistics Canada data indicated.
Prices of oil, one of Canada's major exports, recovered some ground after a surprisingly upbeat picture of U.S. demand halted the previous day's steep slide, although the prospect of oversupply in 2018 prompted more analysts to cut their price forecasts.
The ongoing weakness is set to continue for this pair as the resistance level at 1.3088 is likely to act as strong barrier to the bulls and bring a further decline towards lower levels.
The immediate support can be seen at 1.2915, break below this level will expose the pair to next support level at 1.2846.
Major resistance can be seen at 1.3088, break above this level will expose the pair towards 1.3100 levels.
