FxWirePro: USD/CAD rallies above 1.3500 but reversal is likely
The USD/CAD pair rose on Wednesday as Canadian dollar was pressured by a drop in oil prices offsetting upbeat Canadian GDP data. Canada's gross domestic product grew at an annualized 3.7 percent pace, slightly below econ…
The USD/CAD pair rose on Wednesday as Canadian dollar was pressured by a drop in oil prices offsetting upbeat Canadian GDP data.
Canada's gross domestic product grew at an annualized 3.7 percent pace, slightly below economists' expectations for 3.9 percent, though growth in both the third and fourth quarters of 2016 was revised upward.
Prices of oil, one of Canada's major exports, fell to a three-week low on news that Libyan output was recovering from an oilfield technical issue, fuelling concerns that Organization of the Petroleum Exporting Countries-led output cuts were being undermined by producers outside the deal.
However, further upside for this pair is expected to be limited as strong resistance level at 1.3583 is set to limit upside and bring decline towards lower levels.
The immediate support can be seen at 1.3460, break below this level will expose the pair to next support level at 1.3422.
Major resistance can be seen at 1.3583, break above this level will expose the pair towards 1.3600 levels.
