FxWirePro: USD/CAD loses momentum but outlook is bullish
The USD/CAD pair declined on Wednesday as oil prices rebounded towards 49$ per barrel and global financial markets stabilized for a second straight day following volatility triggered by Britain's vote to leave the Europe…
The USD/CAD pair declined on Wednesday as oil prices rebounded towards 49$ per barrel and global financial markets stabilized for a second straight day following volatility triggered by Britain's vote to leave the European Union.
Oil prices jumped nearly 3 percent on Wednesday after the U.S. government reported a larger-than-expected weekly drawdown in crude inventories.
As long the pair trades above strong support zone located at 1.2900 levels, the ongoing bullish trend for the pair is set to continue in the short term, therefore it good to buy this pair on dips.
To the upside, the strong resistance can be seen at 1.3053, a break above will take the pair towards next resistance level at 1.3119.
To the downside immediate support can be seen at 1.2977 levels, a break below will open the door towards next level at 1.2900.
