FxWirePro: USD/CAD hovers near 1.3500, downside risk remains
The USD/CAD pair declined on Thursday as Canadian dollar firmed against broadly stronger greenback as the price of oil, one of Canada's major exports, stabilized after a sharp loss the day before. The Canadian dollar was…
The USD/CAD pair declined on Thursday as Canadian dollar firmed against broadly stronger greenback as the price of oil, one of Canada's major exports, stabilized after a sharp loss the day before.
The Canadian dollar was also boosted slightly by Wednesday’s data which showed that Canada's economy accelerated in the first quarter on the back of strong consumer spending and a business investment rebound.
U.S. crude prices were up 0.02 percent to $48.33 a barrel after having hit a nearly three-week low on Wednesday.
U.S. industry data showed a big drop in crude stocks last week. But the market remains suspicious whether Organization of the Petroleum Exporting Countries cuts will be enough to rebalance an oversupplied market.
The currency pair is trading around 1.3498 levels and it is set to decline towards 1.3460 and 1.3440 in the short term.
To the upside, the strong resistance can be seen at 1.3585, a break above will take the pair towards next resistance level at 1.3600.
To the downside immediate support can be seen at 1.3460 levels, a break below will open the door towards next level at 1.3425.
