17 Dec 2015
USD/CAD struggles to sustain above 1.38
FXStreet (Mumbai) - The USD/CAD is having a tough time to sustain above 1.38 levels after a 25bps Fed rate hike and amid the moderate drop in the oil prices.
CAD yet to price-in Fed liftoff?
Most of the majors have taken a beating heading into the December Fed meeting. CAD dropped as well, but the slide was largely in line with the drop in the oil prices. So the question remains of the CAD could continue to drop as the CAD traders price-in the Fed’s liftoff.
Ahead in the day, the pair could continue to track the movement in the oil prices. The US weekly labor data in the US could also influence the pair.
USD/CAD Technical Levels
At 1.3802, the immediate resistance is located at 1.3848 (previous day’s high), above which the gains could be extended to 1.39 handle. On the other hand, a break below 1.38 would expose 5-DMA at 1.3717 levels.
CAD yet to price-in Fed liftoff?
Most of the majors have taken a beating heading into the December Fed meeting. CAD dropped as well, but the slide was largely in line with the drop in the oil prices. So the question remains of the CAD could continue to drop as the CAD traders price-in the Fed’s liftoff.
Ahead in the day, the pair could continue to track the movement in the oil prices. The US weekly labor data in the US could also influence the pair.
USD/CAD Technical Levels
At 1.3802, the immediate resistance is located at 1.3848 (previous day’s high), above which the gains could be extended to 1.39 handle. On the other hand, a break below 1.38 would expose 5-DMA at 1.3717 levels.