USD/CAD to 1.33?

USD/CAD to 1.33?

USD/CAD to 1.33?

For the next few days, the biggest focus for the currency market will be Wednesday’s OPEC meeting. With 48 hours to go before an official announcement, OPEC nations are no closer to a deal. There were reports that Saudi Arabia was planning to walk out of the meeting with Iran and Iraq unable to agree on the levels. There’s still a chance that a deal will be reached (50-50) but any agreement will most likely be a watered down one. Canadian GDP numbers are scheduled for release this week but CAD will trade exclusively on oil headlines, which are difficult to predict. If a deal is reached, CAD will soar in response even if it’s an unimpressive one. If the meeting ends with no deal, CAD will plunge.

Technically, it certainly looks like USD/CAD peaked below 1.36 and with lower highs and lower lows, we could see a deeper correction. 1.34 is near term support but the more significant level to watch is the 50-day SMA near 1.33. Resistance remains at the November high of 1.3588.

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