The USDCAD pair came under some renewed selling pressure on Monday, with bears now eyeing a follow-through weakness below the 1.3200 handle.
November 26, GKFX – The pair traded with a negative bias for the third session in the previous four and has now moved within striking of Friday's swing low, touched in a knee-jerk reaction to upbeat Canadian macro data - consumer inflation figures and monthly retail sales data.
A goodish rebound in oil prices underpin Loonie
A strong rebound in crude oil prices underpinned demand for the commodity-linked currency - Loonie and turned out to be one of the key factors exerting some fresh downward pressure at the start of a new trading week.
In fact, WTI crude oil rallied over 1.5% and moved back above the $51.00/barrel mark to recover a part of Friday's nearly 8% plunge, triggered by concerns that surging supply and slowdown in demand growth could create a glut next year.
Meanwhile, a subdued US Dollar demand did little to influence the price action or lend any support, with oil price dynamics acting as an exclusive driver of the pair's negative momentum at the start of a new trading week.
USDCAD technical outlook
A follow-through weakness below the 1.3185-80 region is likely to accelerate the fall towards 1.3130-25 intermediate support en-route the 1.3100 round figure mark.
On the flip side, the 1.3230 horizontal zone, closely followed by the 1.3255-60 region, might continue to act as an immediate resistance, above which the pair is likely to aim towards reclaiming the 1.3300 round figure mark.
This article was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.
If such information is acted upon by you, then this should be solely at your discretion, and GKFX will not be held accountable in any way.