The USD/CAD pair continues to press lower as we progress towards the early European trades, as the Canadian dollar finds some support from the oil price recovery.
USD/CAD extends decline for the 8th straight week
Currently, the USD/CAD pair drops -0.54% to fresh session lows of 1.3274, heading for a test of four-month lows reached near 1.3230 region. The CAD resumes its upward trajectory against the US currency, after a temporary reversal seen yesterday, as the oil prices regain lost footing and stage solid rebound this session on increased hopes for Chinese oil demand after yuan hit fresh yearly highs, making oil imports cheaper for China buyers. Meanwhile, the US oil jumps almost 2.5%, while the Brent oil rallies 2% in Asia.
The Canadian dollar remains the best performer among the commodities-currencies pack, as central bank divergence also remains in the spotlight after the BOC kept rates on-hold, while the RBNZ slashed rates earlier this week. Focus now remains on the Canadian employment data due later today ahead of the Chinese data flow this Saturday and the Fed policy meeting next Wednesday for further updates.
USD/CAD Technical Levels
To the upside, the next resistances are seen near 1.3311/19 (5 & 200-DMA) and 1.3343/50 (10-DMA/ psychological levels). To the downside, immediate support might be located at 1.3228/24 Mar 10 & 9 Low) and below that 1.3200 (round figure).
(Market News Provided by FXstreet)