- US Dollar Index stays in the negative territory.
- West Texas Intermediate looks to settle above $54.
Despite the subdued trading action amid the Thanksgiving holiday in the United States, the USD/CAD pair came under a modest selling pressure in the last hour and fell to a fresh session low of 1.3183. As of writing, the pair was trading at 1.3195, losing 0.3% on a daily basis.
The pair’s recent drop seems to be a product of a slightly weaker greenback. The US Dollar Index, which tracks the greenback against a basket of six major currencies, recently slumped below the 96.50 mark to allow the pair to push lower. Nevertheless, this movement looked merely technical in nature as there were no fundamental catalysts behind it and its unlikely to continue in the remainder of the day. At the moment, the DXY is down 0.23% on the day at 96.48.
On the other hand, after falling to $53.67 earlier in the session, the barrel of West Texas Intermediate erased a small portion of its daily losses and rose above the $54 mark to help the commodity-related loonie to outperform the buck in the last hour.
On Friday, Statistics Canada will publish its inflation report and markets expect the annual CPI to remain steady at 2.2% on a yearly basis, which would confirm the BoC’s hawkish stance and help the CAD end the week on a strong note.
Technical levels to consider
The first technical support for the pair is located at 1.3180 (daily low) ahead of 1.3155 (Nov. 20 low) and 1.3055 (100-DMA). On the upside, resistances align at 1.3245 (daily high), 1.3315 (Nov. 20 high) and 1.3390 (Jul. 19 high).
Share
