USD/CAD: berish outlook on CAD, WTI to fresh lows

USD/CAD is trading at 1.3393, down -0.12% on the day, having posted a daily high at 1.3427 and low at 1.3353.

Why is the dollar struggling? - BBH

USD/CAD is bid despite a soft greenback on Trump taking the lead in the polls. WTI has been breaking down below the $47 handle and made a fresh low of $46.45 which is weighing on the Canadian dollar. "CFTC positioning is bearish CAD, measures of implied volatility are climbing, and risk reversals suggest a sizeable premium for protection against CAD weakness—at levels exceeding those observed around Brexit," explained analysts at Scotiabank. 

USD/CAD levels

Analysts at Scotiabank offered technicals: bullish—momentum signals are bullish, DMI’s are providing confirmation, short-term MA’s are aligned in a bullish manner, and the 50 day MA has broken above the 200 day MA. Recent USDCAD gains have stalled above 1.3420 and support has been observed between 1.3350 and 1.3380. We anticipate a bullish resolution to the recent four session consolidation.

Meanwhile, with spot trading at 1.3394, we can see next resistance ahead at 1.3404 (Daily Classic PP), 1.3409 (Daily Open), 1.3409 (Monthly High), 1.3409 (Weekly High) and 1.3427 (Daily High). Support below can be found at 1.3392 (Hourly 20 EMA), 1.3390 (Hourly 100 SMA), 1.3380 (Daily Classic S1), 1.3375 (Yesterday's Low) and 1.3370 (Weekly Classic PP).