USD/CAD Slips Back as Oil Prices Fall Despite Fed Rate Decision
The US Dollar (USD) has stalled at around $1.4050 against the Canadian Dollar (CAD), failing to break above this level despite a rebound from last week's lows at $1.3990.
This lack of follow-through is seen as a sign that the USD's momentum from the previous week, when investors cut back bets on near-term Fed interest rate hikes after the US Federal Reserve left interest rates unchanged, may be fading.
The Canadian Dollar, however, has been under pressure due to falling Oil prices, which have declined as hopes of a new round of peace talks between the US and Iran have increased. As Canada's main export is Crude Oil, this decline in Oil prices has put downward pressure on the CAD.
Technically, the USD/CAD pair is forming a descending triangle pattern above the $1.4000 support area. While triangles are often continuation patterns, indicating a bullish outcome, bulls will have to breach a cluster of resistances at $1.4070, $1.4105, and $1.4125 before any upward momentum can be sustained.