USDCAD Reversed from 1.33000 EMA 50 Support
- The USD remains strong amid Fed rate pause talks.
- Subdued oil price action helped limit deeper losses, for now.
The USDCAD pair remained under some selling pressure at the start of a new trading week, but recovered around 1.33000 EMA 50 Support.
The pair is trading at 1.33200 ads of writing.
On Friday, the pair witnessed a sharp retracement on the back of Canadian employment details, showing that the number of employed people unexpectedly rose by a whopping 94.1K in November – the highest since at least 1989 and probably the best ever. Increasing Crude Oil prices helped CAD’s recovery.
This coupled with some renewed US Dollar selling, led by disappointing US monthly jobs report for Nov. and dovish comments by the Fed Members further accelerated the selling pressure.
The pair tumbled nearly 150-pips intraday but managed to find some support ahead of mid-1.3200s amid a late pull-back in crude oil prices, which turned out to be one of the key factors that dampened demand for the commodity-linked currency – Loonie.
Technical levels to watch
Loonie is trading in an ascending channel and the key support resides at 1.32500. Sellers will be focusing on the breakout of the rising trend line and 1.32500 support.
On the upside 1.33360 and 1.33660 are the key levels to watch. A bearish reversal may come at 1.33660 towards 1.33000.
On the downside: 1.33000, 1.32700 and 1.32480 are the key intraday levels.
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DISCLAIMER: This is a technical analysis study, not an advice or recommendation to invest money
USDCAD: Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. Chartreaderpro does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.