FxWirePro: USD/CAD neutral in the near-term, scope for downward resumption
The USD/CAD pair declined on Monday as oil prices rose, while softer-than-expected U.S. data weighed on the greenback. Oil edged up for a third straight session, climbing off last week's seven-month lows, but gains were …
The USD/CAD pair declined on Monday as oil prices rose, while softer-than-expected U.S. data weighed on the greenback.
Oil edged up for a third straight session, climbing off last week's seven-month lows, but gains were capped by a relentless rise in U.S. supply and bloated global inventories.
The greenback dipped against a basket of major currencies after new orders for key U.S.-made capital goods unexpectedly fell in May and shipments also declined, suggesting a loss of momentum in the manufacturing sector halfway through the second quarter.
The ongoing weakness is set to continue for this pair as the resistance level at 1.3314 is likely to act as strong barrier to the bulls and bring a further decline towards lower levels.
The immediate support can be seen at 1.3210, break below this level will expose the pair to next support level at 1.3189.
Major resistance can be seen at 1.3314, break above this level will expose the pair towards 1.3348 levels.
