FxWirePro: USD/CAD neutral in the near-term, scope for downward resumption
The USD/CAD pair dipped on Monday as Canadian dollar strengthened after oil prices rose and ahead of a speech by Bank of Canada Senior Deputy Governor Carolyn Wilkins. Gains for the loonie follow surprisingly strong dome…
The USD/CAD pair dipped on Monday as Canadian dollar strengthened after oil prices rose and ahead of a speech by Bank of Canada Senior Deputy Governor Carolyn Wilkins.
Gains for the loonie follow surprisingly strong domestic jobs data on Friday that boosted the argument for the Bank of Canada to raise interest rates.
Wilkins will give a speech on the economy. The central bank will release her prepared remarks at 1:20 p.m. ET (1720 GMT).
Prices of oil, one of Canada's major exports, rose to break a three-day losing streak after futures traders increased their bets on a renewed price upswing.
The ongoing weakness is set to continue for this pair as the resistance level at 1.3547 is likely to act as strong barrier to the bulls and bring a further decline towards lower levels.
Immediate support can be seen at 1.3425, break below this level will expose the pair to next support level at 1.3384.
Immediate resistance can be seen at 1.3486, break above this level will expose the pair towards 1.3500 levels.
