USD/CAD: CAD bulls continue to cheer OPEC deal

The Canadian dollar manages to keep the bid tone intact against its American counterpart in the Asian session this Thursday, keeping USD/CAD within a striking distance of fresh four-day lows struck at 1.3049 earlier on the day.

USD/CAD supported above 50-DMA at 1.3039

Currently, the USD/CAD pair trades +0.16% higher at 1.3221, having printed fresh session highs at 1.3229 in the last hour. The Loonie moved-off highs, but remains well bid as the sentiment around the resource-linked currency remains underpinned amid upside consolidation in oil prices, following the OPEC’s output cut deal announcement.

Reuters sources noted late-Wednesday that the OPEC finally reached a modest agreement to limit production levels, which will be executed at its Nov meeting. The OPEC would reduce output to a range of 32.5-33.0 million barrels per day, marking the first deal in eight years.

In the day ahead, the major will be left to the mercy of the oil price-action until the NA session, with the US GDP data lined up for released alongside a slew of Fed speaks.

USD/CAD Technical Levels

To the upside, the next resistances are seen near 1.3095 (200-DMA) and 1.3141/42 (10 & 5-DMA) and from there to 1.3200 (round figure). To the downside, immediate support might be located at 1.3039 (50-DMA) and below that at 1.3001 (100-DMA) and at 1.2977 (Sept 2 low).