October’s High In View For The USD/CAD
The USD/CAD is continuing its bullish ways, rallying toward October’s high at 1.3347. The price action is a bit counterintuitive, with WTI crude above $58.00 and Canada’s Wholesale Sales (MoM, September) coming in extremely positive. From a fundamental perspective, the Loonie should be on the march vs the Greenback. But, as with most things market-related, there is much more going on than meets the eye.
If you are holding open positions in the USD/CAD, then the next 48 hours are going to be pivotal. Aside from the weekly crude oil inventories reports, U.S. Q3 GDP is due out on Wednesday. Given the limited participation surrounding the Thanksgiving holiday, we may be in for directional moves across the forex ahead of the long weekend break.
USD/CAD: Technical Outlook
Technically, the uptrend in the USD/CAD remains valid and a bullish bias is warranted. Until we see a legitimate pullback in this market, 1.3350 and 1.3400 are very real possibilities.
Here are the levels to watch in the Loonie going into this week’s oil inventory schedule:
- Resistance(1): October High, 1.3347
- Support(1): 78% Retracement, 1.3280
Overview: No doubt about it, the next 48 hours are going to be key for the USD/CAD. If you are holding open positions, be sure to respect the API and EIA crude oil stocks reports. In addition, U.S. Q3 GDP is going to be a monster on Wednesday. Going into each of these economic events, be sure to have your stops down and leverage in check!