USD/CAD rises back towards 1.3400

USD/CAD resumed the advance on Friday after pulling back from 2-week highs as lower oil prices fueled CAD weakness.

While the US dollar takes a breather from last days’ steep rally, the loonie weakened taking USD/CAD to the 1.3380 area. However, the pair has lacked momentum to retest Thursday’s highs in the 1.3415 zone. At time of writing, the pair is trading at 1.3365, up 0.24% on the day and on track to post a 1.34% weekly gain.

On the data front, US housing starts slumped 18.7% in November, while building permits fell 4.7%. Meanwhile, foreign investors bought a net CAD 15.75 billion Canadian dollars in Canadian securities in October,  above the CAD 12.35 billion expected.  

USD/CAD technical levels

In terms of technical levels, next resistances could be found at 1.3400 (psychological level), 1.3417 (Dec 15 high) and 1.3437 (Dec 1 high). On the flip side, supports are seen at 1.3317 (Dec 16 low), 1.3267 (Dec 15 low) and 1.3237 (10-day SMA).