The USD/CAD pair continued its decline on Thursday as the Canadian dollar gained strength as prices of oil rose for a third straight day, offsetting broader gains for the greenback. U.S. crude prices were up 0.83 percent…
The USD/CAD pair continued its decline on Thursday as the Canadian dollar gained strength as prices of oil rose for a third straight day, offsetting broader gains for the greenback.
U.S. crude prices were up 0.83 percent at $49.92 a barrel, supported by supply disruptions in Libya and lower output from other Organization of the Petroleum Exporting Countries exporters.
Canadian producer prices edged up 0.1 percent in February from January, which was less than the 0.3 percent increase analysts had expected. Still, the year-on-year gain picked up to 3.5 percent from 2.5 percent.
The ongoing weakness is set to continue for this pair as the resistance level at 1.3363 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 1.3258, break below this level will expose the pair to next support level at 1.3217.
Major resistance can be seen at 1.3363, break above this level will expose it towards 1.3408 levels.
