USD/CAD fails to hold above 1.3400

USD/CAD reached fresh 7-month highs during the New York session but found resistance and quickly pulled back below the 1.34 mark.

The pair has been flirting with the 1.3400 level over the last days, but it has been unable to consolidate above it. USD/CAD reached its highest level since March at 1.3418 but was rejected and it is back at square one for the day around  1.3380 at time of writing. However, USD/CAD is still on track for a weekly gain, the second in a row.

US data came in mixed on Friday, with gross domestic product expanding at an inflation- and seasonally adjusted 2.9% annual rate in the third quarter, accelerating from 1.4% pace in the second quarter and above the 2.5% rise expected. Meanwhile, the Reuters/Michigan consumer confidence index dropped to 87.2 in Oct, below 88.1 expected.

USD/CAD technical levels

In terms of technical levels, next resistances could be found at 1.3418 (Oct  28 high), 1.3445 (Mar 9 high) and 1.3498 (Mar 2 high4 (200-day SMA). On the other hand, supports could be faced at 1.3351 (Oct 27 & 28 lows), 1.3313 (Oct 26 low) and 1.3300 (psychological level) ahead of 1.3276 (Oct 25 low).