FXStreet (Mumbai) – The pause in the oil price decline helped the Canadian dollar to take back a part of previous steep losses against its American rival, with USD/CAD easing-off fresh 11-year highs.
USD/CAD eyes 1.3900
Currently, the USD/CAD pair trades modestly flat at 1.3935, hovering close to session lows struck at 1.3926. The major met fresh supply near 1.3960 on its recovery and reverted to daily lows as stabilizing oil prices and renewed sell-off in the greenback continues to push USD/CAD away from multi-year tops. USD index drops -0.23% to 98.97 levels.
The USD/CAD pair soared to fresh 11-year highs at 1.3987 on Thursday after the Canadian dollar was hit badly by renewed sell-off in oil prices, triggered by a stronger USD and haunting supply glut worries. The US oil prices dropped sharply and threatened to test the lowest levels in more than six years at $ 34.53.
Meanwhile, the pair will continue to track the price-action in the black gold while the USD moves will also have major influence in the day ahead. On the data front, Canadian CPI and wholesale sales data will be closely eyed.
USD/CAD Technical Levels
To the upside, the next resistance is located 1.3960 (daily high) levels and above which it could extend gains to 1.3987 (Dec 17 High). To the downside, immediate support might be located at 1.3897 (daily pivot) and below that 1.3822 (5-DMA).
(Market News Provided by FXstreet)