USD/CAD upside momentum fades

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 25, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Córdoba) - USD/CAD resumed the upside on Monday following a strong pullback witnessed last week, which was driven by a sharp recovery in oil prices.

    After falling to the 1.4110 zone on Friday, USD/CAD turned back higher, in sync with oil’s pullback, and advanced to a daily peak of 1.4268 before steadying in a range just below. At time of writing, the pair is trading at 1.4235, recording a 0.66% gain on the day, just below the 50% retracement of its 2016 rally between 1.3811-1.4689 that stands at 1.4250.

    WTI retraced most of its Friday’s gains, losing 5.8% throughout the day, but managed to settle above $30.00 a barrel.

    USD/CAD levels to consider

    As for technical levels, on the upside next resistances could be found at 1.4299/1.4300 (Jan 22 high/psychological level), 1.4396 (Jan 14 high) and 1.4540 (Jan 21 high). On the other hand, supports are seen at 1.4200 (psychological level) and 1.4150 (61.8% Fibo of 2016 rally 1.3811-1.4689) ahead of 1.4113 (Jan 22 low).
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