FXStreet (Mumbai) – The Canadian dollar failed to benefit from higher oil prices and edged lower in the holiday-light European trades, sending USD/CAD towards 1.39 handle.
USD/CAD tests 1.39 and retreats
Currently, the USD/CAD pair trades 0.13% higher at 1.3893, hovering close to session highs reached at 1.3902 in early Europe. USD/CAD extends gains for the second straight session and now looks to extend gains above 1.39 barrier, as the resource-linked loonie appears to completely ignore the minor-recovery seen in oil prices after falling more than 3% on Wednesday. At the moment, the US oil (WTI) rises 0.33% and remains capped below 37 barrier while the Brent oil also gains 0.63%.
Looking ahead, oil price action will continue dictate further moves in the pair while the renewed strength in the US dollar ahead of the US datasets keeps the sentiment underpinned.
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 1.3869 (1h 100-SMA) and below that 1.3813 (Dec 28 Low).
(Market News Provided by FXstreet)