USD/CAD bounces-off support near hourly 200-SMA

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Apr 5, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The bid tone surrounding the USD/CAD pair weakened a bit in the European session, sending the prices back towards 1.31 handle, before finding fresh bids near hourly 200-SMA placed at 1.3117.

    USD/CAD re-takes 1.3137

    Currently, the USD/CAD pair gains 0.36% to 1.3134, retesting five-day highs printed at 1.3137. The Canadian dollar managed to recover some ground against its US counterpart in the European hours, on the back of a minor-recovery staged by the oil prices.

    Meanwhile, the US oil trades modestly flat at $ 35.66, while the Brent oil trades -0.30% lower, both having recovered almost entire losses.

    However, the USD bulls appear to fight back control over the last hour, allowing the rate to head higher on the back of a sudden bounce in the greenback against its major peers. The USD index gains 0.12% to 94.70, extending the recovery from 94.50 levels.

    Later today, the trade figure from both the North American economies will be published, which will have major influence on the CAD pair, apart from other US economic releases.

    USD/CAD Technical Levels

    To the upside, the next resistances are seen near 1.3147/50 (Apr 1 High/ psychological levels) and 1.3200 (round number). To the downside, immediate support might be located at 1.3102 (10-DMA) and below that 1.3050 (5-DMA).
    For more information, read our latest forex news.

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