The USDCAD pair remained under some selling pressure for the second consecutive session on Friday and dropped to fresh weekly lows in the last hour, albeit quickly recovered few pips thereafter.
November 16, GKFX – A strong follow-through up-move in crude oil prices, which tend to underpin demand for the commodity-linked currency – Loonie, turned out to be one of the key factors exerting some downward pressure on the major.
Expectations that the Organization of the Petroleum Exporting Countries (OPEC), which meets on Dec. 6 in Vienna for its policy-setting meeting, will agree on cuts of around 1 million bpd or more remained supportive of the oil rebound over the past two days.
Meanwhile, the US Dollar failed to capitalize on overnight up-move, triggered by the latest UK political turmoil and held on the defensive through the early European session on Friday, which eventually did little to lend any support to the major.
The pair extended its retracement slide from near four-month tops, levels just above mid-1.3200s touched on Wednesday, but now seems to have found some support near mid-1.3100s ahead of the second-tier economic releases from the US and Canada.
Today’s economic docket features the release of monthly Manufacturing Sales data from Canada, which coupled with industrial production data and capacity utilization rate from the US might provide some short-term impetus on the last trading day of the week.
USDCAD Technical Analysis
On a sustained break below mid-1.3100s, the pair is likely to accelerate the fall towards 1.3110 intermediate support en-route the 1.3085 region. On the flip side, the 1.3200 handle is likely to act as an immediate resistance, above which the pair is likely to aim towards decisively breaking through the 1.3250-60 heavy supply zone.
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