USD/CAD holds above hourly 50-SMA support

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 29, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - The USD/CAD pair consolidates its corrective slide heading into the early European morning, following Monday’s sharp rise beyond 1.39 barrier, led by the resumption of the broader downtrend in oil prices.

    USD/CAD back below 1.39 handle

    Currently, the USD/CAD pair trades -0.21% lower at 1.3874, hovering close to session lows reached at 1.3870 in early Asia. The major stalled its downslide near the key support of hourly 50-SMA at 1.3867 and consolidates to the downside for the next leg lower on the back of stabilizing oil prices after yesterday’s profit-taking slide, which is expected to keep the resource-linked loonie underpinned. Oil is Canada’s top export product. At the moment, the US oil (WTI) trades 0.33% higher and nears 37 barrier while the Brent oil also recovers 0.41% near $ 36.60.

    Further adding to the downside in the USD/CAD pair, the greenback continues to trade lower against its major competitors, extending its post-FOMC corrective slide into the final week of 2015. Looking ahead, in absence of fresh fundamental triggers until the US session, the pair will continue to track oil price action.

    USD/CAD Technical Levels

    To the upside, the next resistance is located 1.3917 (Dec 28 High) levels and above which it could extend gains to 1.3936 (Dec 23 High). To the downside, immediate support might be located at 1.3867/50 (1h 50-SMA/ 5-DMA) and below that 1.3813 (Dec 28 Low).
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