USD/CAD inching towards 1.3200 handle

Haresh Menghani FXStreet

After a brief pause on Tuesday, the USD/CAD pair resumed with its near-term downward trajectory and dropped to seven-week low on Thursday.

Currently trading around 1.3210 region, the lowest level since Oct. 20, the greenback's weekly corrective slide, with the overall US Dollar Index now quoting below 100.00 psychological, and is seen weighing on the pair. Moreover, the prevalent bullish sentiment surrounding oil prices is further boosting demand for the commodity-linked currency - Loonie, and exerting additional selling pressure around the major. At the time of reporting, WTI crude oil traded with gains of over 1.0% and has now regained control over the critical $50.00 psychological mark.

Meanwhile, BoC's decision to leave its monetary policy unchanged, at its meeting on Wednesday, is also seen benefitting the Canadian Dollar, while mounting expectations for an upcoming Fed rate-hike has failed to lend any support to the major.

Traders now look forward to Canadian housing starts and building permits data, and weekly jobless claims from the US, later during NA session, for short-term trading opportunities.

Technical levels to watch

On the immediate downside, the pair is expected to find support near 1.3200-1.3295 region (100-day SMA) below which the slide could further get extended towards the next support near 1.3150 level. On the upside, first resistance is seen near at 1.3235 (session peak) above which the pair is expected to dart towards 1.3270-80 strong horizontal resistance.

1 Week
1 Month
1 Quarter

1 Week

Avg Forecast 1.3350

50% Bullish
25% Bearish
25% Sideways

Bias Bullish

1 Month

Avg Forecast 1.3358

62% Bullish
38% Bearish
0% Sideways

Bias Bullish

1 Quarter

Avg Forecast 1.3379

62% Bullish
25% Bearish
12% Sideways

Bias Bullish

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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