FxWirePro: USD/CAD outlook weaker on renewed downside pressure
The USD/CAD pair declined on Tuesday as oil prices extended recent gains ahead of a meeting of major producers and domestic data showed solid growth in wholesale trade. The value of Canadian wholesale trade rose by 0.9 p…
The USD/CAD pair declined on Tuesday as oil prices extended recent gains ahead of a meeting of major producers and domestic data showed solid growth in wholesale trade.
The value of Canadian wholesale trade rose by 0.9 percent in March from February to hit a record, pushed up by demand for building materials and supplies, Statistics Canada said.
The price of oil, one of Canada's major exports, rose as expectations that the Organization of the Petroleum Exporting Countries and other producers will extend output cuts offset U.S. President Donald Trump's plan to sell off half of the country's huge oil stockpile.
The ongoing downside is set to continue for this pair as the resistance level at 1.3575 is likely to act as strong barrier to the bulls and bring a further decline towards lower levels in the short term.
The immediate support can be seen at 1.3438, break below this level will expose the pair to next support level at 1.3407.
Major resistance can be seen at 1.3575, break above this level will expose the pair towards 1.3640 levels.
