USD/CAD trades on the highs for the day close to 1.3313
The buck is pushing positive factors towards the likes of the euro, swissie and loonie to start out the morning and we’re seeing USD/CAD keep underpinned above the 1.3300 deal with with patrons trying to find an extension to the upside transfer yesterday.
Regardless of a poor retail gross sales report from the US, USD/CAD really climbed to a excessive of 1.3340 as Canadian manufacturing gross sales surprisingly declined for a 3rd month operating. That noticed worth broke near-term resistance ranges that have been highlighted yesterday right here.
Patrons stay in near-term management now however are nonetheless unable to discover a well beyond swing area resistance from across the mid-November highs at 1.3318-30. That continues to maintain a lid on the upside transfer within the pair since buying and selling final week.
For buying and selling over the following few periods, the pair shall be very a lot dictated by the technical playbook in my opinion.
Patrons should safe a each day break above the 1.3318-30 swing area stage to retest the 76.four retracement stage @ 1.3384. In the meantime, sellers will firstly have to interrupt under the important thing hourly transferring averages seen @ 1.3268 and 1.3247 presently. However extra importantly, they should discover a well beyond the 100-day MA (purple line) @ 1.3240.
Solely a break under that can additional justify a transfer to the draw back, in any other case I would argue that the upside momentum stays very a lot intact within the long-run.
As for fundamentals, it is all about US-China commerce talks and threat optimism/pessimism proper now so look in direction of that to drive sentiment within the pair and oil over the following few days. Very similar to different threat property, constructive headlines might assist spur a knee-jerk bounce within the loonie and oil however I might count on that to be light thereafter.