FxWirePro: USD/CAD regains upwards momentum but outlook still bearish
The USD/CAD pair rose on Thursday as lower oil prices and broader strength in the greenback pressured the Canadian dollar. Prices of oil dropped to six-week lows, under pressure from high global inventories and doubts ab…
The USD/CAD pair rose on Thursday as lower oil prices and broader strength in the greenback pressured the Canadian dollar.
Prices of oil dropped to six-week lows, under pressure from high global inventories and doubts about OPEC's ability to implement agreed production cuts.
Losses for the loonie came two days after Bank of Canada signalled that higher interest rates lie ahead.
The pair hit low at 1.3265 before recovering slightly to trade around 1.3281 levels in the afternoon US session.
Further upside is expected to be limited as the pair finds strong resistance at 1.3381 which should limit upside and bring decline towards lower levels in the short term.
Major support can be seen at 1.3163, break below this level will expose the pair to next support level at 1.3100.
The immediate resistance can be seen at 1.3304, break above this level will expose the pair towards 1.3381 levels.
