USD/CAD (current price: 1.2847)
The Canadian Dollar closely followed the path of oil yesterday as the crucial commodity rose in early trading, but faded during the afternoon after a surprisingly strong report on Iranian crude output. The pair has been consolidating following the vicious rally of last week, but the short-term trend still seems to be bullish. USD/CAD might get back above the 1.30 level next week, as the long-term momentum indicators still remain deeply in oversold territory.
Our assessment: The pair might be headed higher again following three days of consolidation, with the 1.2820 level providing support. Resistance is found near 1.2920 and 1.30.
