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USD/CAD: uptick capped at hourly 50-MA

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 14, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    Oil price drop helped USD/CAD recover from Friday’s four-month low, but the bullish move failed to take the pair above hourly 50-MA level of 1.3268 levels.

    CAD tracks oil

    Canadian dollar trades on a weak footing as oil prices at both sides of the Atlantic dropped on Iran news. Brent and WTI fell more than 1% each, still, USD/CAD is up just 0.36%. The pair had moved back above 1.33 levels on Friday after the release of weak Canadian employment figure.

    However, oil regained bid tone in the NY session, pushing the USD/CAD to a low of 1.3268 levels. With no major data due for release ahead in the day, the pair remains at the mercy of oil price gyrations.

    USD/CAD Technical Levels

    The spot currently trades around 1.3260. The immediate hurdle is seen at 1.3270 (76.4% Fibo of 1.2832-1.4690), ahead of a major resistance at 1.3303 (200-DMA) and 1.3436 (Nov 23 high). On the other hand, a break below support at 1.3211 (daily low) could see spot drift lower to Friday’s low of 1.3167, which if taken out could see the pair test 1.30 handle.
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