The Canadian dollar is gathering further traction vs. its American peer on Thursday, now dragging USD/CAD to the 1.3065/60 band, session lows.
USD/CAD lower on USD-selling, oil gains
Spot is trading at shouting distance from 5-month lows in the 1.3030 area following a continuation of the selling pressure around the greenback. In addition, the barrel of West Texas Intermediate continues to edge higher, trading closer to the critical $40.00 mark and thus resuming the rally after earlier weekly lows near $36.00.
With the FOMC already in the rear-view mirror, crude oil dynamics will re-assume the role of the exclusive driver behind the pair’s price action, relegating today’s US releases to the passenger’s seat.
USD/CAD significant levels
As of writing the pair is retreating 0.30% at 1.3058 with the next support at 1.3034 (low Nov.3 2015) ahead of 1.3000 (psychological level) and finally 1.2827 (monthly low Oct.15 2015). On the other hand, a surpass of 1.3331 (200-day sma) would open the door to 1.3419 (20-day sma) and then 1.3681 (100-day sma).
(Market News Provided by FXstreet)