USDCAD trades 0.11% higher at 1.3152, close to daily high despite the jump in crude oil prices that reached the $56.75. On Friday the United States Nonfarm Payrolls came in at 128K topping expectations of 89K in October, the Unemployment Rate came in at 3.6% in line with forecasts for October.
Bank of Canada the previous week kept interest rates unchanged at 1.75% as widely expected by markets while Fed delivered the 25 basis point rate cut that the market expected. BoC will possibly wait until the Q1 next year before easing. Loonie supported by high crude oil price, Canada’s main export product, and higher interest rates.
USDCAD momentum is negative despite the intraday rebound to daily highs. The pair trades below all major daily moving averages. On the upside, immediate resistance stands at 1.3159 the daily top, then at 1.3196 the 100-day moving average, while more sellers will emerge at 1.3218 the 50-day moving average.
On the downside, USDCAD first support stands at 1.3129 the daily low, a break below might drive prices down to 1.3075 the low from October 30, while more bids will emerge at 1.3015 the low from July 14th.Download our latest quarterly market outlookfor our longer-term trade ideas.
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