USD/CAD: Bears loosen grip, re-takes 5-DMA

The USD/CAD pair stalled its downslide and now attempts an anemic recovery towards 5-DMA resistance located at 1.3540.

USD/CAD ignores weaker oil prices

Currently, the USD/CAD pair trades -0.21% lower at 1.3532, recovering slightly from session lows struck at 1.3523 in the last hour. The major trims losses, although remains deep in the red as the US dollar extends its bearish momentum versus a basket of major currencies, with the USD index now meandering around session troughs of 102.84.

While the Loonie appears to shrug-off moderate losses seen in oil prices, as the major is largely driven by the sentiment around the greenback. The USD price-action remains in focus as we head into the New Year, in light of Trump’s fiscal spending and Fed’s faster pace of tightening.

The immediate focus now remains on the US dataflow and EIA US crude stockpiles data lined up for release later in the NA session.

USD/CAD Technical Levels

To the upside, the next resistances are seen near 1.3581 (multi-month highs) and 1.3600 (round figure) and from there to 1.3630 (daily R2). To the downside, immediate support might be located at 1.3500/1.3491 (round figure/ 10-DMA) and below that at 1.3467 (daily S3) and at 1.3408 (Dec 22 low).