The USD/CAD bounced off overnight and 3-month lows at 1.33149 to finish at 1.3408 in late New York, little changed from yesterday’s 1.3415. Oil prices were steady overnight with Brent Crude mildly higher at USD 41.00 from USD 40.80. The Greenback’s move lower against the Canadian Loonie is overextended and the solid bounce back suggests a much-needed correction is underway.
USD/CAD has immediate resistance at 1.3435 followed by 1.3475 and 1.3510. Immediate support can be found at 1.3370 followed by 1.3340 and 1.3310. Look for consolidation in this pair between 1.3370-1.3520. Prefer to buy this pair dips.