8 Dec 2014
USD/CAD advances beyond 1.1450 amid oil prices
FXStreet (San Francisco) - The USD/CAD is trading higher on Monday as investors are betting on the Greenback since low oil prices are affecting the value of the Canadian dollar.
Even good Canadian data such as housing starts data for November was unable to buck the trend and USD/CAD is performing its third day of gains. Currently, USD/CAD is trading at 1.1463, up 0.27% on the day, having posted a daily high at 1.1469 and low at 1.1425.
USD/CAD spot is in neutral territory according to the hourly FXStreet OB/OS Index, while the FXStreet Trend Index is slightly bullish.
USD/CAD sentiment
The oil is trading at new low of 5 years since the Brent is 3.4% negative on the day to $66.71; while the WTI fell 3.1% so far today to $63.81. Earlier in the day, Morgan Stanley cut its forecast for a Brent at $53/bbl in 2015 from $98 previously predicted.
As you may know it, the Canadian dollar is highly correlated to oil, so the CAD is currently under pressure as oil is overshadowing the good economic data.
So, as for the short term, the USD/CAD will find resistances at 1.1465, 1.1475 and 1.1500. To the downside, supports are at 1.1435, 1.1425 and 1.1415.
Even good Canadian data such as housing starts data for November was unable to buck the trend and USD/CAD is performing its third day of gains. Currently, USD/CAD is trading at 1.1463, up 0.27% on the day, having posted a daily high at 1.1469 and low at 1.1425.
USD/CAD spot is in neutral territory according to the hourly FXStreet OB/OS Index, while the FXStreet Trend Index is slightly bullish.
USD/CAD sentiment
The oil is trading at new low of 5 years since the Brent is 3.4% negative on the day to $66.71; while the WTI fell 3.1% so far today to $63.81. Earlier in the day, Morgan Stanley cut its forecast for a Brent at $53/bbl in 2015 from $98 previously predicted.
As you may know it, the Canadian dollar is highly correlated to oil, so the CAD is currently under pressure as oil is overshadowing the good economic data.
So, as for the short term, the USD/CAD will find resistances at 1.1465, 1.1475 and 1.1500. To the downside, supports are at 1.1435, 1.1425 and 1.1415.