Lower oil prices put pressure on the CAD pushing it to much lower levels, and finally towards 1.3213 at the today Asian session.
IMPACT ON USD:
Ahead of the key events in the US such as data release on ADP non-farm employment change, trade balance, and ISM non-manufacturing PMI as well as Canada’s trade balance report that is due to be published today, the pair is trading at higher levels with highly overbought indicators. Before further upward movevemnt, we expect the price to correct a bit.
Technical view: Monthly resistance seems to be at 1.3380. In all time frames, oscillators seem overbought. The pair has been moving higher for five straight sessions. It means the pair has been moving higher for six weeks in a row.
Intraday resistance seems to be at 1.3250, 1.3285, and 1.3300. Support is at 1.3175, 1.3160, and 1.3150. Intraday selling available below 1.3150 aims at 1.3110. The market waiting for the NFP data that can define the trend.
The material has been provided by InstaForex Company – www.instaforex.com