FxWirePro: USD/CAD reverses recent rally, bias back to downside
Wednesday, May 24, 2017 2:27 PM UTC
- The USD/CAD pair declined in the US session on Wednesday as oil correlated Canadian dollar strengthened across the board after the Bank of Canada held interest rates steady as expected.
- The bank kept the benchmark interest rate at 0.50 percent, as widely expected, saying its monitoring of data suggests that very strong growth in the first quarter of the year will be followed by "some moderation" in the second quarter.
- Oil prices were little changed on Wednesday as investors awaited official data on inventories in the United States and the outcome from Vienna where ministers from OPEC and other exporting countries were discussing whether to extend production cuts.
- The currency pair is trading around 1.3444 levels and it is set to decline towards 1.3400 and 1.3350 in the short term.
- To the upside, the strong resistance can be seen at 1.3532, a break above will take the pair towards next resistance level at 1.3593.
- To the downside immediate support can be seen at 1.3436 levels, a break below will open the door towards next level at 1.3398.
Resistance Levels
R1: 1.3475 (38.2% Retracement level)
R2: 1.3532 (50% Retracement level)
R3: 1.3593 (61.8% Retracement level)
Support Levels
S1: 1.3436 (Session lows)
S2: 1.3398 (23.6% Retracement level)
S3: 1.3338 (April 7th lows)