FXStreet (Edinburgh) – The Canadian dollar continues to appreciate vs. its American counterpart on Monday, with USD/CAD now hovering over the 1.2930 area.
USD/CAD looks to oil, spread
The risk appetite trends remain the almost exclusive catalyst for the pair’s price action at the beginning of the week following today’s inactivity in both US and Canadian markets.
In the meantime, the Canadian dollar continues to derive support from the recent recovery in crude oil prices as well as the 2-year CAD-US spread, which have pushed CAD to fresh 3-month lows around the 1.2900 handle.
Next of relevance in the pair will be the speech by Governor S.Poloz, due tonight.
USD/CAD levels to consider
As of writing, the pair is losing 0.14% at 1.2927 and a breach of 1.2863 (Fibo 61.8% of 1.1920-1.3457) would aim for 1.2700 (psychological level) and then 1.2694 (200-day sma). On the other hand, the initial hurdle aligns at 1.2998 (100-day sma) followed by 1.3000 (psychological level) and finally 1.3186 (55-day sma).
(Market News Provided by FXstreet)