Dollar/CAD reached new highs as oil hit new lows, but managed to stabilize once again. What’s next? The GDP report stands out. Here are the highlights and an updated technical analysis for USD/CAD.
Oil prices suffered another tumble, hitting the lowest levels in a year. The black gold fell alongside stocks. When they recovered, petroleum prices recovered as well, but the Canadian Dollar remained on the back foot. US durable goods orders missed expectations and added to warning signs about the global economy.
USD/CAD daily chart with support and resistance lines on it. Click to enlarge:
*All times are GMT
USD/CAD Technical Analysis
Dollar/CAD continued its upside assault and temporarily topped 1.3295 (mentioned last week).
Technical lines from top to bottom:
1.3385 was the high point seen in May and towers above. 1.3350 was a stepping stone on the way and on the way down around the same time.
1.3320 was the high point in late November. 1.3295 capped the pair back in July.
Lower, 1.3265 was the high point in mid-November. 1.3225 played a role in capping USD/CAD back in September.
1.3175 was a swing low in late November and it is followed by 1.3125 which was also a low point, earlier in the month.
Below 1.3000 we find the late-October trough of 1.2970. 1.2880 was a double-bottom in September and in August.
