USD/CAD: Rejected by hourly 100-MA despite weak Canadian data

By FXStreet FXStreet (Mumbai) – The weaker-than-expected Canada GDP and retail sales figure failed to push the USD/CAD pair above the hourly 100-MA resistance at 1.3937 levels.

Oil supports CAD

The losses in the CAD have been restricted by the technical correction in the oil prices. Both oil and CAD have been offered heavily since Dec 4. Consequently, oil has edged higher on unwinding of shorts ahead of the holiday season and that appears to have capped gains in the USD/CAD pair at the hourly 100-MA resistance.

Meanwhile, even the overcrowded USD long is being squared off ahead of the year end. Hence, the bid tone on the USD failed to gather pace despite upbeat personal spending, personal income and the better-than-expected US durable goods orders release.

USD/CAD Technical Levels

The pair currently trades 1.3920. The immediate resistance is seen at 1.3936 (hourly 100-MA+hourly 50-MA), above which the pair could target 1.3955 (previous day’s high and resistance on the hourly chart). A break higher would expose 1.40 handle. On the other hand, a break below 1.39 could see the pair drop to 1.3840 (hourly 200-MA).
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Source:: FX Street