FxWirePro: USD/CAD loses momentum but outlook is bullish
Friday, March 24, 2017 3:57 PM UTC
- The USD/CAD pair inched higher on Friday as oil prices dipped slightly and dollar firmed ahead of a vote in Washington on healthcare reform, seen as pivotal for U.S. President Donald Trump's pro-growth agenda.
- Trump warned House Republican lawmakers that he will leave Obamacare in place and move on to tax reform if they do not get behind new healthcare legislation in a vote on Friday.
- Canada's annual inflation rate dipped to 2.0 percent in February from 2.1 percent in January, Statistics Canada said. Analysts had expected the inflation rate to remain at 2.1 percent.
- Oil prices dipped slightly amid hopes that an OPEC output cut was beginning to balance a long-oversupplied market.
- The pair remains under bulls control unless until it trades above 1.3000 resistance level, therefore it is good to buy this pair on dips.
- The immediate support can be seen at 1.3360, break below this level will expose the pair to next support level at 1.3000.
- Major resistance can be seen at 1.3456, break above this level will open the door towards 1.3500 levels.
Resistance Levels
R1: 1.3406 (50% Retracement level)
R2: 1.3456 (61.8% Retracement level)
R3: 1.3500 (Psychological levels)
Support Levels
S1: 1.3360 (38.2% Retracement level)
S2: 1.3000 (23.6% Retracement level)
S3: 1.3265 (March 21st lows)