USD/CAD: CAD bulls continue to cheer OPEC deal

Dhwani Mehta FXStreet

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).

1. R3 1.3401
2. R2 1.3335
3. R1 1.3208
PP 1.3142
1. S1 1.3014
2. S2 1.2949
3. S3 1.2821

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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