FxWirePro: USD/CAD heads southwards as crude oil prices rebound, but outlook still bullish
Canadian dollar firmed against US dollar on Tuesday, after Canadian dollar gathered some momentum after crude oil price rebounded more than 3 percent after data showed Chinese oil demand hit a record high in 2015. The ou…
Canadian dollar firmed against US dollar on Tuesday, after Canadian dollar gathered some momentum after crude oil price rebounded more than 3 percent after data showed Chinese oil demand hit a record high in 2015.
The outlook for crude remains bearish as the oversupply in the market is set to worsen with the return of Iranian oil in the market following lifting of nuclear sanctions by international community.
The currency pair is trading at 1.4478 levels, it is expected to reach 1.4550 levels and later 1.4600 levels in the short term.
The immediate support can be seen at 1.4476, break below this level will expose the pair to next support level at 1.4430.
Major resistance can be seen at 1.4515, break above this level will expose it towards 1.4558 levels. Recommendation: Go long around 1.4450 with targets at 1.4550, 1.4600 SL 1.4400. Resistance Levels
R1: 1.4515 (50% Retracement level)
R2: 1.4558 (38.2% Retracement level)
R3: 1.4613 (23.6% Retracement level) Support Levels
