The Canadian dollar strengthened recently against the US dollar after BoC Gov. Macklem said in testimony at the House of Commons that inflation remains too high therefore the central bank's tightening cycle is not over. On the other hand, further upside momentum was capped by weakness in crude oil, the top Canadian export product, amid a worsening outlook for global growth. Greenback weakened following dovish FOMC Minutes released on Wednesday. Pair bounced off major resistance at 1.3390, which is marked with previous price reactions and upper limit of the descending channel. If current sentiment prevails, downward move may accelerate towards support at 1.3350 or even 1.3320 mark. On the other hand, if buyers manage to break above aforementioned resistance, then the road towards next resistance at 1.3440 will be left open.
USDCAD, H1 interval. Source: xStation5
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