FXStreet (Edinburgh) – USD/CAD is now losing further altitude following the releases in the US docket, testing daily lows in the 1.4425/20 band.
USD/CAD lower on oil recovery
Canadian dollar is deriving further support from the current recovery in the barrel of West Texas Intermediate, managing to recover the $28.00 mark and beyond. Adding further downside to the pair, US Initial Claims have missed expectations, up ticking to 293K during the week ended on January 15.
Further data saw the Philly Fed manufacturing survey coming in at -3.5 for the current month, bettering previous estimates. Later in the session, EIA’s weekly report on crude oil inventories will take centre stage, with consensus gyrating around an increase by nearly 3.0 million barrels during the last week.
USD/CAD significant levels
As of writing the pair is losing 0.45% at 1.4423 and a break below 1.4164 (20-day sma) would aim for 1.3793 (low Dec.24) and finally 1.3790 (3-month uptrend). On the other hand, the next resistance is located at 1.4692 (high Jan.20) followed by 1.4946 (high Apr.7 2003) and then 1.5000 (psychological handle).
(Market News Provided by FXstreet)