USD/CAD: based on 1.27, eyes a pop too 1.2820 resistance
USD/CAD has spiked on the back of weaker oil prices yet again. Currently, USD/CAD is trading at 1.2776, up 0.32% on the day, having posted a daily high at 1.2792 and low at 1.2712. WTI has dropped from 55.71 to 55.07, supported, so far, by the 4-4hr 100 SMA at 55.12.
Canada existing home sales for October were up just +0.9% vs the previous 2.1%, while home sales fall -4.3% versus a year ago. For the greenback, the US CPI data came in as expected while retail sales came in better inclusive of revisions. Empire manufacturing was, however, weaker than expectations. The DXY has been climbing back towards 93.80, off fro the session lows down at 93.40.
- US: CPI for all items increases 0.1% in October as shelter index rises
Analysts at Scotiabank argued that momentum signals are neutral, trend strength is muted, and USD/CAD is stuck in a relatively tight range on the 1.2700 handle. Near-term resistance is expected at 1.2820. Support is expected between 1.2650 and 1.2620. The FXStreet Technical Confluences Indicator highlights the 1.2820 as the 61.8% and swing-high from Nov 7th business.