Bulls Seems to Regain Control Over USD/CAD
The USD/CAD pair extended its recovery from yesterday's low and is now trading comfortably above the mid-point of 1.2800-1.2900 handle.
The pair's weakness on Thursday to 1.2770 level was on the back of
higher-than-expected US weekly jobless claims data and a sharp rise in
crude oil prices. The drop, however, was quickly bought into after some
hawkish comments from three voting members of the Fed’s interest-rate
setting committee, clearly indicating that two interest-rate hikes were
still on the table for 2016 provided US economic data remains robust.
The pair's further recovery, however, remained capped on buoyant crude
oil prices. Any signs of profit taking in crude should assist the pair
to further extend its recovery.
Technical levels to watch
On the upside, traders would be immediately eyeing for a sustained move
above 1.2900 round figure mark ahead of the recent closing highs
resistance near 1.2950-60 region. A follow through buying interest above
1.2950-60 resistance now seems to provide the required momentum to lift
the pair beyond 1.3000 psychological mark, initially towards 1.3075-80
intermediate resistance and eventually towards April month daily closing
highs resistance near 1.3145-50 zone.
On the downside, 1.2840 horizontal area seems to protect immediate
downside, which if broken might negate the bullish outlook and could
drag the pair back below 1.2800 handle towards its next major support
near 1.2720-15 area.
