USD/CAD consolidates the quick rebound post-BOC Poloz
|
The USD/CAD pair stalled its rebound from BOC Poloz’s driven lows and now consolidates the upside amid resurgence of broad greenback strength as markets price-in a Dec Fed rate hike.
USD/CAD breaks above 5-DMA at 1.3309
Currently, the USD/CAD pair advances 0.41% to 1.3342, bouncing-off quickly from a downward spike to 1.3277, session troughs. The Canadian dollar is the worst performer amongst the commodity-currencies, as the BOC Governor Poloz’s latest comments continue to weigh on the domestic currency. Although the Governor failed to comments on the monetary policy, markets witnessed some sharp moves at Asia-open.
Moreover, resumption of broad based US dollar strength amid rising hopes for a Dec rate hike also drove the quick rebound in the CAD pair. Meanwhile, muted trading activity seen around oil prices continues to dampen the sentiment around the resource-linked Loonie.
Focus now shifts towards a string of US economic releases, including consumer confidence, and US API crude stockpiles report due later in the NA session.
USD/CAD Technical Levels
To the upside, the next resistances are seen near 1.3363 (daily R1) and 1.3398 (7-month highs) and from there to 1.3450 (psychological levels). To the downside, immediate support might be located at 1.3300 (round figure) and below that at 1.3277 (daily low) and at 1.3217/16 (10 & 20-DMA).
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.