USD/CAD rises to new session highs above 50-DMA

The USD/CAD pair continued to add to its daily gains during the NA session and rose back above the 50-DMA, recovering all losses from Wednesday. At the moment the pair is trading around 1.3330 in a calm manner. 

The markets lost interest in the CAD on the back of a drop in WTI crude oil prices, which settled below $53 per barrel on Thursday, recording a daily loss of 0.4%. Additionally, BoC Governor Poloz sounded cautious about the economy when he gave his remarks on the monetary policy decision and the economic outlook.

• BoC's Poloz: Economy continues to have significant excess capacity

On the other hand, the greenback remained strong on Thursday as the markets seemed to have forgotten Trump's comments. The US Dollar Index is up 0.43% on the day at 100.50. Since there are no data due to be released from Canada on Friday, the price action could continue to be driven by the DXY. The CPI and retail sales from the United States will be watched closely, but the reaction is likely to be short-lived as the volumes are expected to stay low due to Easter holiday.

Technical outlook

1.3315 (50-DMA) is now seen as the immediate support followed by 1.3250 (200-DMA)  and 1.3200 (psychological level). On the upside, resistances could be encountered at 1.3360 (50-DMA), 1.3455 (Apr. 4 high) and 1.3500 (psychological level).