The greenback managed to recover from Thursday’s losses and the USDCAD pair moved higher on Friday as it was seen to be 0.30 percent stronger during the London session, trading at around 1.3220.
The pair has managed to defend the bullish trend line a couple of times and it managed to bounce from this support line again today. Therefore, the first major support is at 1.3185 and if it is not held, the USDCAD pair could decline to 1.3160, or possibly to 1.3125. Breaking below 1.3125 could cancel the current uptrend and set the next target at the 100-day moving average near 1.3070.
On the upside, bears may defend the 1.3250 level and if this one is taken out, the pair might continue higher toward the actual cycle highs, slightly above the 1.33 mark.
Oil continues to drop nearly every day, which is negative for the Loonie, and investors will focus on today’s Canadian inflation numbers, along with retail sales, which could bring some volatility to the USDCAD pair.
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