USD/CAD Achieves Target - Can We Expect 1.3345 Soon?
|The USD/CAD closed at 1.33076 after placing a high of 1.33085 and a low of 1.32701. Overall the movement of the pair remained Bullish that day. At 19:30 GMT, the Manufacturing PMI from Canada for the month of November showed growth to 51.4 against the previous month's 51.2.
Bank of Canada has expressed its concerns over the escalating global trade uncertainties and is expected to leave its benchmark interest rates art 1.75%. On Monday, the US President Donald Trump said that he would not back off from tariff hike in December in case of no-deal between China & the US by then.
After this news, the Canadian Dollar weakened against the US Dollar as investors worried about the increased global trade conflicts that could affect the decision of Bank of Canada related to an interest rate, which is due this week.
The major export of Canada includes Crude Oil, whose prices on Monday were supported by the hints from OPEC that the output cut would be extended in this week's meeting. The fresh signs for output cuts came after the increased manufacturing activity from China on Monday, which would increase the demand for crude oil.
Crude oil prices went up by 1.8% to trade at $56.16 per barrel.
Canadian Government Bond prices were lower on Monday across a steeper yield curve. The 2-year Yield went down to 1.621%, and the 10-year yield fell to 1.546%. Lower Canadian Yields weighed on Canadian Dollar and gave a boost to the upward trend of USD/CAD on Monday.
| Support | Pivot Point | Resistance |
| 1.3286 | 1.3298 | 1.332 |
| 1.3264 | 1.3332 | |
| 1.323 | 1.3366 |
The USD/CAD has already tested our previously suggested target level of 1.3320. Right now, it's trading just below the resistance level extended by the ascending triangle pattern at 1.3320.
The violation of the 1.3320 level can trigger buying until1.3345. Conversely, the closing of USD/CAD below 1.3320 can trigger bearish retracement. Watch out the trade setup below...
USD/CAD – Trade Setup
Buy Stop 1.3325
Take Profit 1.3345
Stop Loss 1.3300
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