USD/CAD consolidates around 1.3400, remains near multi-month highs

  • Loonie losses gains and USD/CAD rises back above 1.3400.
  • Price holds near multi-month highs with the bullish tone intact. 

After trading for a few hours below 1.3400, USD/CAD rose back above and reached at 1.3422, the highest level since Wednesday. As of writing, trades at 1.3405, headed toward the highest close since June 2017. 

The pair rebounded from 1.3375/80 (daily low) supported by a stronger US dollar that gained momentum following US November PPI numbers and amid risk aversion. The loonie also lost strength as crude oil trimmed gains. The Dow Jones failed to hold to gains. After a positive opening, is now down 0.70%. 

USD/CAD Levels and technical outlook 

The pair continues to move with a bullish bias in an ascendant channel, close to the upper limit. The critical level is seen at 1.3250/55, the conjunction of the 20-day moving average and an uptrend line. A slide below could point to the end of the US dollar rally. 

To the upside, resistance levels are seen at 1.3380, followed by 1.3400 (Dec 7 high) and 1.3430. On the flip side, support could be located at 1.3335 (Asian session high), 1.3290 (Dec 10 low) and 1.3255. 

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