USD/CAD pauses 3-day winning streak, but holds above 10-DMA

The Canadian dollar stands resilient to renewed weakness seen in oil prices, having stalled the upside attempts in USD/CAD above 1.35 handle.

USD/CAD supported near 10-DMA at 1.3477

Currently, the USD/CAD pair peeks into the red zone as the bears look to regain control, in response to broad based US dollar correction, after having hit a ceiling last hours. The USD index, which measures greenback’s relative performance against a basket of six major currencies, drops to 101.70, down -0.07% on the day, unable to take-out 102 handle.

However, the downside remains cushioned after oil prices ran through fresh sellers, after a brief consolidation phase seen earlier on the day, hurting the resource-linked Loonie.

Markets will continue to track the USD price-action ahead of the US goods trade balance and flash services PMI data due on the cards later today. However, limited reaction is expected on the data release, as all eyes remain on next week’s OPEC decision on the output cut deal.

USD/CAD Technical Levels

To the upside, the next resistances are seen near 1.3530 (daily R1) and 1.3550 (psychological levels) and from there to 1.3590 (Nov 14 high). To the downside, immediate support might be located at 1.3477 (20-DMA) and below that at 1.3454 (20-DMA) and at 1.3420 (Nov 23 low).

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