- The Canadian dollar is among the worst results of the American session.
- USDCAD is trading bullish, about to break 1.3400.
- Crude oil falls more than 4%.
The USDCAD it is rallying during the American session on Friday. It recently hit a fresh daily high at 1.3398 and then pulled back slightly. It is looking for the 1.3400 zone, with a bullish tone as crude oil falls and the US dollar recovers.
The context favors the dollar
Data released in Canada showed that the Industrial Goods Price Index increased by 2.4% in October, above the 0.4% expected. The Commodity Price Index rose 1.3%, versus expectations for a flat reading. However, the figures did not help the loonie.
Stocks on Wall Street trim gains as Crude Oil prices fall more than 4%. At the same time, the dollar is strengthening as market sentiment deteriorates and US yields remain in positive territory.
The context is driving the USDCAD which is testing the 1.3400 zone which limited the rise on Thursday. A break to the upside could open the doors to the next resistance level seen at 1.3460. If the dollar fails in this zone, it is likely to go back to 1.3300 in the next few sessions. Tentative resistance is at 1.3355.
USDCAD is about to end the week with a gain of over 100 points, ending a five-week losing streak. Prices rebound from the lowest level in months and also from the 20-week moving average. A weekly close below 1.3250 should point to further declines.
technical levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
