USD/CAD Faces Double Whammy, 1.30 Tested

USD/CAD Faces Double Whammy, 1.30 Tested

30 March 2016, 11:48
Roberto Jacobs
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USD/CAD Faces Double Whammy, 1.30 Tested

The USD/CAD pair staged almost a 40-pips recovery from just ahead of 1.30 handle, now attempting to regain 1.3050 amid broad based US dollar weakness.

USD/CAD drops for the 3rd straight session

Currently, the USD/CAD pair drops -0.23% to 1.3043, recovering from fresh six-day lows of 1.3005. The USD/CAD pair was hit by double whammy this Wednesday as the US dollar was heavily sold into the dovish Yellen’s comments on one hand, while the rebound in the oil prices bolstered the Canadian dollar on the other side. Both crude benchmarks are rallying over +1.50% so far.

Next on tap for the pair is the US ADP report that may provide fresh cues on the USD moves, followed by the EIA crude inventory report, which is expected to impact the oil prices and in turn the Loonie.

USD/CAD Technical Levels

To the upside, the next resistances are seen near 1.3075/1.3100 (1h 20-SMA/ round number) and 1.3148/50 (1h 50-SMA/ psychological levels). To the downside, immediate support might be located at 1.3005/00 (Daily Low) and below that 1.2945 (Oct Levels & Daily S2).

(Market News Provided by FXstreet)

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