FxWirePro: USD/CAD neutral in the near-term, scope for downward resumption
The USD/CAD pair declined on Friday as higher oil prices and domestic growth which supported the Bank of Canada's more hawkish stance strengthened Canadian dollar. Canada's economy expanded by 0.2 percent in April after …
The USD/CAD pair declined on Friday as higher oil prices and domestic growth which supported the Bank of Canada's more hawkish stance strengthened Canadian dollar.
Canada's economy expanded by 0.2 percent in April after a 0.5 percent increase in March, Statistics Canada said. The gain matched analysts' estimates.
Oil prices climbed for a seventh straight session in their longest bull run since April but were still set for the worst first-half performance since 1998.
Hawkish comments earlier this week from Bank of Canada Governor Stephen Poloz have raised expectations for an interest rate hike as early as next month.
The ongoing weakness is set to continue for this pair as the resistance level at 1.3086 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 1.2921, break below this level will expose the pair to next support level at 1.2900.
Major resistance can be seen at 1.3086, break above this level will expose the pair towards 1.3123 levels.
