USDCAD adds 0.07% at 1.3289, in quiet trading as US markets are closed for Thanksgiving. Statistics Canada reported that Canada’s current account deficit widened to C$9.86 billion in the 3Q from C$6.74 billion deficit in the 2Q the expectations were for -14.6 billion, the Current Account came in at -9.86B, below analysts forecasts of -9B for the third quarter.
Fed chair Jerome Powell earlier this week, reiterated his optimistic view of the U.S. economy and also said that the Fed’s three rate cuts this year have helped real estate, contributing to the economy’s longest expansion.
Meanwhile, crude oil prices trade lower for the second day, at $57.91 per barrel putting pressure to the Canadian dollar.
USDCAD Technical Analysis
USDCAD yesterday rejected at 1.3327 a strong resistance for the pair as it failed the last five sessions. The pullback today stopped at the 200-day moving average. USDCAD tested the 100-day moving average the previous week and managed to run an impressive rally breaching the 200-day moving average resistance.
On the upside, USDCAD first resistance stands at 1.3298 today’s high, a break above that level will target the next critical resistance at 1.3327 the high from November 11th, before any attempt to 1.3345 the high from October 10th.
On the downside, immediate support for USDCAD stands at 1.3274 the daily low and the 200-day moving average, while a break below will open the way for a move down to the 100-day moving average at 1.3216.