- Increase in crude prices triggered the pullback during thin trading on early Good Friday.
- 1.3405 keeps acting as an immediate resistance with 100-day SMA standing as nearby support.
USD/CAD is taking the rounds near 1.3370 during early Friday. The Loonie refrains from extending earlier recovery backed by the US data as the latest news reports fuelled prices of oil, Canada’s largest export item.
The US Dollar (USD) strengthened across the board on Thursday after the US March month retail sales registered upbeat growth numbers.
As a result, more than expected numbers of Canadian retail sales couldn’t gain market attention.
During initial Friday for Asian markets, crude prices increased based on geopolitical problems at Libya and supply crunch signals emanating from Baker Hughes rig counts and Saudi export data.
While the decline in weekly reading of Baker Hughes US oil rig counts and third straight dip in Saudi Arabia’s monthly oil export numbers portrayed supply crunch, Reuters’ report of hostilities at suburban parts of the Libyan capital Tripoli highlighted geopolitical tension and supported the energy benchmark.
Looking forward, investors may well concentrate on the news report as the economic calendar is silent due to Good Friday holidays at major economies.
USD/CAD Technical Analysis
In addition to 1.3405, a downward sloping trend-line since March 07, at 1.3440, can also restrict near-term upside of the quote, a break of which may encourage buyers to aim for March month highs near 1.3470 ahead of looking to 1.3510 resistance level.
Meanwhile, 100-day simple moving average (SMA) near 1.3330 and 50-day SMA around 1.3315 can entertain short-term traders whereas 1.3280 and 1.3240 may flash on the radar afterward.
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