Thus far in November, the USD/CAD has experienced a sell-off from October highs. The recent jump in crude oil pricing has been good to the Canadian dollar. For the past five sessions, it has gained in the neighborhood of 150 pips against the greenback.

Today’s forex session has continued this trend, with a moderate sell-off testing important long-term or “macro” support levels. If price action is cooperative, we may be in a position to trade the USD/CAD in coming sessions.

USD/CAD Outlook

This morning’s release of the Canadian housing metrics brought positive news. Housing Starts year-over-year for October came in nearly 13 thousand above projections. The month-over-month gain in Building Permits of four percent is a surprise going into the harsh Canadian Winter.

USD/CAD, Daily Chart

Moving forward, here are the key support and resistance levels:

• Support(1): 38% retracement of October’s range, 1.2731

• Support(2): 38% retracement of 2017’s range, 1.2722

• Support(3): 20 Day EMA, 1.2695

• Resistance(1): October’s high, 1.2916

• Resistance(2): 50% retracement of 2017’s range, 1.2926

Overview

Currently, the USD/CAD is trading in between support levels one and two. If this price level holds for the remainder of the session, it will be a signal of prolonged rotation between 1.2731 and 1.2926. Thursday and Friday’s sessions may provide an opportunity to play a rotational strategy back towards the 1.2800 level.

In the meantime, check out the live signals page for trades facing a variety of asset classes.