CANADIAN DOLLAR OUTLOOK:

• USD/CAD extends losses amid constructive market sentiment
• Larger oil costs additionally profit the Canadian greenback
• The pair appears to be on the verge of invalidating a key technical help zone, a bearish sign for value motion

Most Learn: EUR/USD Confronts Trendline Resistance, Threatens Breakout After Sizzling German CPI

The Canadian greenback, colloquially often known as the loonie by foreign exchange merchants, continued to understand on Thursday, supported by widespread U.S. greenback weak point, risk-on sentiment on Wall Avenue and rising oil costs, with USD/CAD retreating greater than 0.2% to 1.3530, the bottom trade fee in every week.

After falling greater than 2.4% from the 2023 highs reached on March 10, the pair is presently sitting above an vital technical help zone situated close to the psychological 1.3500 degree and the 50-day easy transferring common, as seen on the day by day chart beneath. Merchants ought to maintain an in depth eye on the pair’s conduct on this space for clues on the near-term course.

For bearish conviction to strengthen, USD/CAD should break beneath 1.3500 decisively on day by day closing costs. With world market sentiment on the mend, this situation may unfold briefly order, paving the best way for a drop in the direction of trendline help at 1.3420. On additional weak point, the main focus shifts to the 200-day easy transferring common, adopted by 1.3220.

Conversely, if bulls handle to wrestle non permanent management and drive costs larger, preliminary resistance could be seen at 1.3700, a barrier that has halted upside momentum in its tracks on quite a few events in December 2022 and January this 12 months. Within the occasion of a bullish breakout, a retest of the March swing excessive can’t be dominated out.

USD/CAD TECHNICAL CHART

USD/CAD Technical Chart Ready Utilizing TradingView