USD/CAD approaches 1.4000

By FXStreet FXStreet (Córdoba) – The US dollar managed to climb to fresh daily highs versus its Canadian counterpart and approached the 1.4000 level as markets enter holiday mode.

USD/CAD resumed the upside following a short-lived correction seen last Friday, and climbed to a high of 1.3993 stalling just shy of its 11-year peak of 1.4003 as oil consolidates near 6-year lows amid supply glut concerns. At time of writing, USD/CAD is trading at 1.3977, up 0.32% on the day.

While the greenback has been strengthening in the lead up to the Fed lift-off, the loonie has faced growing pressure coming from lower commodity prices, sending USD/CAD to levels not seen since 2004.

USD/CAD technical levels

As for technical levels, next resistances could be faced at 1.4003 (May 18 2004 high), 1.4086 (Aug 28 2003 high) and then 1.4100 (psychological level). On the downside, short-term supports are seen at 1.3853 (Dec 18 low), 1.3777 (Dec 17 low) and 1.3758 (10-day SMA).
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Source:: FX Street