FxWirePro: USD/CAD gains some upside momentum but still bearish
The USD/CAD pair inched higher on Tuesday as Canadian dollar was pressured by fall in oil prices and the country's current account deficit widened. Prices of oil, one of Canada's major exports, were pressured by concerns…
The USD/CAD pair inched higher on Tuesday as Canadian dollar was pressured by fall in oil prices and the country's current account deficit widened.
Prices of oil, one of Canada's major exports, were pressured by concerns that production cuts by the world's big exporters may not be enough to drain a global glut that has depressed the market for almost three years.
Canada's current account deficit widened more than expected in the first quarter of the year on an increase in imports of both good and services, data from Statistics Canada showed. The C$14.05 billion gap exceeded economists' expectations for a deficit of C$12 billion.
However, further upside for this pair is expected to be limited as resistance at 1.3571 is set to limit upside and bring decline towards lower levels.
The immediate support can be seen at 1.3436, break below this level will expose the pair to next support level at 1.3386.
Major resistance can be seen at 1.3571, break above this level will expose it towards 1.3600 levels.
