FXStreet (Mumbai) – The USD/CAD pair fell to 1.3293 in Asian session as oil prices strengthened on news that Saudi Arabia is ready to cut output in order to support prices.
USD/CAD: Off lows, but weak
The pair recovered from lows to trade around 1.3316, but remains in the red. The bid tone on the CAD gathered pace tracking the gains in oil prices after news hit the wires that Saudi is willing to cut production by 1 million barrels per day, if Iran and Iraq follow the suit and the non-OPEC nations agree to reduce their output as well.
Oil prices on both the sides of the Atlantic gained 1% each. However, the conditional nature of the proposed deal by the Saudi’s capped gains in the oil and CAD.
USD/CAD Technical Levels
The immediate resistance is located at 1.3341 (hourly 200-MA), above which the gains could be extended to 1.3436 (Nov 23 high). On the other hand, a break below 1.3280 (Nov 25 low) would expose 50-DMA at 1.3195.
(Market News Provided by FXstreet)