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FxWirePro: USD/CAD loses momentum but outlook is bullish

  • 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)
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