USDCAD Upside Capped at 1.3320

USDCAD adds 0.05% at 1.3305 but off the daily highs after the United States Wholesale Inventories came in at 0.2% above forecasts of -0.6% in October, the Goods Trade Balance climbed from previous $-70.39B to $-66.53B in October. United States Redbook Index (month over month) dropped from previous -0.3% to -0.4% in November 22. The S&P/Case-Shiller Home Price Index (year over year) came in at 2.1% in line with forecasts for September.

Yesterday, Fed chair Jerome Powell, 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 reversed earlier losses and as of writing trades 0.53% higher at $58.32 per barrel helping loonie cut its losses against USD.

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USDCAD Support and Resistance Levels to Watch

USDCAD trades in just 20 pips trading range but holds above the 1.33 mark as the bulls are in control of the pair. USDCAD tested the 100-day moving average the previous week and managed to run an impressive rally breaching the 200-day moving average resistance. Bulls are hovering close to monthly highs but stalled at 1.3320 region.

USDCAD immediate resistance stands at 1.3315 today’s top, a convincing break above that level will target the next resistance at 1.3327 the high from November 11th, before an attempt to 1.3345 the high from October 10th.

On the other hand, first support for the pair stands at 1.3296 the daily low while a break below will open the way for a test of the 200-day moving average at 1.3276.More content