USD/CAD New November Highs
USD/CAD - H4
The pair maintains its positive undertone and runs its third straight profitable day, managing to extend this week's gains into new monthly highs.
Wednesday's heightened Canada CPI Inflation (Core reading at 3.8% y/y vs 3.7% prior) could not help the Canadian currency, which could not take advantage of the US Dollar's demise either.
Big drop in oil price amidst talks and reports for coordinated release of strategic petroleum reserve by major oil producers had a detrimental effect, sending USD/CAD back above its 200Day EMA on Wednesday.
Today it extends gains and eyes 1.2676, which can open the door for a greater advance towards the descending trendline from this year's highs at around 1.2790.
On the other hand, the pair's previous daily close above the 200Day EMA had been short-lived and a pull back below this level (1.2580-70) could be in the cards. This would make it vulnerable again to the 200H4 EMA, but a catalyst would be required for broader losses towards 1.2400.
Investors will be monitoring the situation around Oil, while awaiting tomorrow's Retail Sales form Canada.
Past Performance: Past Performance is not an indicator of future results.
Nikos Tzabouras
Senior Financial Editorial Writer
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. With extensive experience in market analysis and a strong foundation in international relations, he brings a unique perspective to financial markets. Nikos emphasizes not only technical analysis but also on fundamentals and the growing influence of geopolitics on financial trends.
As a Senior Financial Editorial Writer, he delivers comprehensive and forward-looking insights across a wide range of asset classes, including equities, commodities, and currencies. His work explores how macroeconomic events, political developments, and global policies impact market dynamics, providing readers with a deeper understanding of both short-term movements and long-term trends.
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