FxWirePro: USD/CAD loses momentum, but reversal is likely
The USD/CAD pair declined sharply in US session hitting as low as 1.3834 after oil prices jumped as much as 5 percent on Wednesday after investors broadly sold off U.S. dollar after weak ISM non-Manufacturing PMI data. D…
The USD/CAD pair declined sharply in US session hitting as low as 1.3834 after oil prices jumped as much as 5 percent on Wednesday after investors broadly sold off U.S. dollar after weak ISM non-Manufacturing PMI data. Despite weekly data showing a surprisingly large rise in crude oil inventories, the oil-correlated canadian dollar rose against US dollar due to high volatility in the market ahead of Fridays non- farm payrolls.
However, further decline towards lower levels should be limited as pair faces strong support at 1.3800 levels Technically stochastic is in oversold levels, RSI Indicator is slowly turning up at 37.
To the upside, the strong resistance can be seen at 1.4000, a break above will take the pair towards next resistance level at 1.4130.
To the downside immediate support can be seen at 1.3800 levels, a break below will open the door towards next level at 1.3765.
Recommendation: Go long around 1.3800, targets 1.3900, 1.3980, SL 1.3700
