USD/CAD - USD/CAD The Next Level to Watch is 1.3260 - 12/05/2016 (GMT)

The big story last week of the three commodity currencies was the Canadian dollar and the OPEC meeting last Wednesday. The OPEC decision of cutting production drove the USD/CAD pair for a further downside movement and plunged more than 1.7% over last week.

From a technical point of view, on the daily chart, the pair is establishing in an ascending move since May 2016 and hit a fresh eight-month high, early in November. Going to a lower timeframe, currently, the pair is developing under the short-term trend line and near the 1.3310 price level. Also, the commodity currency slipped below the 50-daily SMA and challenged the 1.3260 support level. Our expectation is a retest of the latter level as the technical indicators are holding below its mid-levels. The RSI indicator is sloping downwards while the MACD oscillator lies below the zero line and above its trigger line.