- USD / CAD consolidates losses in the 1.3000 area.
- The loonie falls as oil prices retreat from eight-month highs.
- The pair remains near two-year lows at 1.2930.
The U.S. dollar It has risen for the second day in a row on Thursday, although the pair is still unable to break above the 1.3025 / 30 resistance area. The pair is trading practically flat at around 1.3000 in a weak market session in the middle of the Thanksgiving holiday in the United States.
CAD loses steam as oil prices decline
The slight recovery in the USD has been supported by the downward correction in oil prices. The price of a barrel of WTI has declined from eight-month highs above $ 46 to $ 45 after appreciating almost 12% in a six-day rally.
However, the loonie is fairly stable near its two-year highs against its North American counterpart. Oil prices continue to trade at their highest levels since the first COVID-19 outbreak after surging nearly 30% in November, fueled by hopes that coronavirus vaccines will help mitigate falling demand. caused by locks.
USD / CAD: Close to key support at 1.2930
From a technical point of view, the dollar is trading above 1.2995 (November 25 low), marking the way to 1.2830 (November 9 low). Below that, the pair would be at its lowest prices in two years, with the next area of interest likely at 1.2790 (October 2018 low).
On the upside, the USD should first break above 1.3030 (November 25 high, intraday high) to extend towards 1.3120 (November 19 high) and then 1.3170 (November 13 high and 50-day SMA ).
Technical levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
