After previous day’s pullback from monthly highs, the pair USD/CAD saw heavy buying and advanced on Friday amid falling oil prices. The pair remained its bullish traction and touched at the highest level since October 1 near 1.266 area, currently posting a 0.32% gain on a daily basis. WTI crude oil dropped below $76, weighing on the commodity-linked loonie and pushed USD/CAD pair further. The falling oil prices is caused by increasing global oil supply and concerns about resurging Covid-19 cases. On top of that, recent strength witnessed in US dollar also lifted the pair higher.
For technical aspect, RSI indicator 68 figures as of writing, suggesting that the pair is near overbought zone, a trend reversal could be expected. But looking at the MACD indicator, the MACD is now sitting above the signal line, which means that upward trend could persist. As for the Bollinger Bands, the price rose from the moving average and now sit near the upper band, therefore the bullish tone still remained. In conclusion, we think market will be bullish as the pair is testing the 1.2648 resistance.
Resistance: 1.2648, 1.2775, 1.2849
Support: 1.2493, 1.2387, 1.2288
Economic Data
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Currency |
Data |
Time (GMT + 8) |
Forecast |
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CNY |
PBoC Loan Prime Rate |
09:30 |
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GBP |
Composite PMI (Oct) |
16:30 |
54.1 |
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USD |
Existing Home Sales (Oct) |
23:30 |
6.20M |
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