USD/CAD firmer on falling oil prices, 1.39 on sight

FXStreet (Mumbai) – The Canadian dollar emerged the biggest loser among the commodity-currencies so far this session as the oil prices returned the red zone after a brief recovery seen on Tuesday.

USD/CAD eyeing 1.39 handle

Currently, the USD/CAD pair trades 0.21% higher at 1.3874, hovering close to session highs reached at 1.3880 in last hours. The renewed sell-off in the black gold weakened the resource-linked loonie as oil is Canada’s top export product.

At the moment, the US oil (WTI) slides -2.50% and surrenders 37 barrier while the Brent oil also follows suit and plunges -1.80% to about 37 handle.

As the macro calendar remains data-thin in the session ahead, oil price action will continue to dictate further moves in the CAD pair.

USD/CAD Technical Levels

To the upside, the next resistance is located 1.3917 (Dec 28 High) levels and above which it could extend gains to 1.3936 (Dec 23 High). To the downside, immediate support might be located at 1.3845 (1h 20-SMA) and below that 1.3813 (Dec 28 Low).

The Canadian dollar emerged the biggest loser among the commodity-currencies so far this session as the oil prices returned the red zone after a brief recovery seen on Tuesday.

(Market News Provided by FXstreet)