The Canadian dollar manages to keep the bid tone intact against its American counterpart in the Asian session this Thursday, keeping USD/CAD within a striking distance of fresh four-day lows struck at 1.3049 earlier on the day.
USD/CAD supported above 50-DMA at 1.3039
Currently, the USD/CAD pair trades +0.16% higher at 1.3221, having printed fresh session highs at 1.3229 in the last hour. The Loonie moved-off highs, but remains well bid as the sentiment around the resource-linked currency remains underpinned amid upside consolidation in oil prices, following the OPEC’s output cut deal announcement.
Reuters sources noted late-Wednesday that the OPEC finally reached a modest agreement to limit production levels, which will be executed at its Nov meeting. The OPEC would reduce output to a range of 32.5-33.0 million barrels per day, marking the first deal in eight years.
In the day ahead, the major will be left to the mercy of the oil price-action until the NA session, with the US GDP data lined up for released alongside a slew of Fed speaks.
USD/CAD Technical Levels
To the upside, the next resistances are seen near 1.3095 (200-DMA) and 1.3141/42 (10 & 5-DMA) and from there to 1.3200 (round figure). To the downside, immediate support might be located at 1.3039 (50-DMA) and below that at 1.3001 (100-DMA) and at 1.2977 (Sept 2 low).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD extends its upside above 0.6600, eyes on RBA rate decision
The AUD/USD pair extends its upside around 0.6610 during the Asian session on Monday. The downbeat US employment data for April has exerted some selling pressure on the US Dollar across the board. Investors will closely monitor the Reserve Bank of Australia interest rate decision on Tuesday.
EUR/USD holds positive ground above 1.0750 ahead of Eurozone PMI, PPI data
The EUR/USD trades in positive territory for the fourth consecutive day near 1.0765 on Monday during the early Asian trading hours. The softer US Dollar provides some support to the major pair.
Gold holds below $2,300, Fedspeak eyed
Gold price loses its recovery momentum around $2,295 on Monday during the early Asian session. Investors will keep an eye on Fedspeaks this week, along with the first reading of the US Michigan Consumer Sentiment Index for May on Friday.
Bitcoin Cash could become a Cardano partnerchain as 66% of 11.3K voters say “Aye”
Bitcoin Cash is the current mania in the Cardano ecosystem following a proposal by the network’s executive inviting the public to vote on X, about a possible integration.
Week ahead: BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.