Canadian dollar declines against USD as a renewed uptick in oil prices underpin Loonie and further collaborates to the USDCAD pair’s weaker tone.
April 11, OctaFX – The USDCAD pair traded with a mildly weaker tone through the Asian session on Friday and eroded a part of the previous session’s strong up-move to weekly tops.
A combination of supporting factors – a goodish US Dollar rebound and a sharp pullback in oil prices, helped the pair to catch some aggressive bids on Thursday and build on this week’s goodish bounce from sub-1.3300 level, or three-week lows.
The overnight attempted USD recovery from near two-week lows, further supported by robust US economic data and a subsequent rise in the US Treasury bond yields, fizzled out on Friday and was seen as one of the key factors exerting some pressure on the major.
A renewed uptick in oil prices underpin Loonie
This coupled with a pickup in crude oil prices, now up nearly 0.4% for the day, underpinned the commodity-linked currency – Loonie and further collaborated to the pair’s weaker tone on the last trading day of the week, though the downside remained limited.
The pair managed to trim a part of its early slide to an intraday low level of 1.3358 and now seems more likely to witness a subdued/range-bound price action amid relatively thin economic docket – highlighting the release of Prelim UoM Consumer Sentiment from the US.
USDCAD technical outlook
Any subsequent up-move might continue to confront some fresh supply near the 1.3395-1.3400 region, above which the pair seems all set to aim towards testing the 1.3440-50 supply zone. On the flip side, the 1.3360-55 region now becomes immediate support to defend, which if broken might accelerate the fall further towards the 1.3320 horizontal support en-route the 1.3300 round figure mark.
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