FXstreet.com (London) - USD/CAD is trading tightly range bound this session. Oil stays firms above $80 amidst political tensions and increased demand off the back of the recent cold snap.
As the seventh largest producer of oil, Canadas economy is closely linked to the price of oil, and the state benefits for a rise in oil prices. The midterm downtrend of this pair is testament to growing investor confidence in the Loonie.
Despite the increased market positivity around the Loonie, Dollar strength today stole the spotlight, as Greenback pressed upwards on an improved labour market and on growing expectations for a positive figure tomorrow. We find pair trading in range between 1.0350 and 1.0335.
USD/CAD currently trades at 1.0340, down just a single pip on the open. PreciseTrader comments on the technical indicators: Hourly Trend is Sideways while 10375 holds and Daily Trend is Sideways Down while 10535 holds, so expect the price to be Choppy and Downside may be limited. The Daily Trend has been creeping lower and approaching the prior swing low of 10205. The Hourly Trend is exhibiting signs of bottoming so the bears have to be Cautious,10375-10425 are the critical levels to watch to maintain the bearish outlook.