USD/CAD unable to break above 1.3500, retreats to 1.3455

The USD/CAD pair continues to consolidate strong weekly gains but the rally appears to have found resistance around the 1.3500 handle. Recently the pair peaked at 1.3499, the strongest level since March 10, but it quickly retreated to 1.3455. 

It was trading at 1.3470, marginally lower for the day and still 150 pips above the level it closed last week. 

While equity prices in the US were rising on average 0.60%; crude oil was gaining modestly, with the WTI trading around $50.50. 

Economic data from the US had no impact on the currency market (jobless claims and Philly Fed). Tomorrow will be an important day, with the release of the Canadian CPI index (March) while in the US the flash PMI reading is due. 

US: Seasonally adjusted initial claims was 244,000, an increase of 10,000 from the previous week

Philly Fed: Regional manufacturing activity continued to expand, but at a slower pace than last month

Technical levels

To the upside, resistance could be located at 1.3500 (psychological) and 1.3535 (Mar 09 high). On the flip side, support could be seen at 1.3455 (daily low), 1.3415 (Mar 28 high) and 1.3370 (Apr 19 low). 

 

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