The Canadian dollar extends its upbeat momentum versus the greenback for the second straight session today, knocking-off USD/CAD to new two-month lows on the 1.36 handle.
CAD rises in tandem with Oil
Currently, the USD/CAD pair drops -0.75% to 1.3678, trading within a striking distance of fresh two-month lows struck at 1.3666 some minutes ago. The USD/CAD’s minor-recovery met fresh supply near 1.3685 region and the commodity-currency fell sharply thereon, now forming three black crows on the hourly sticks.
USD/CAD remains heavily offered this session, as it faces double whammy from the broad based US dollar sell-off on one hand, while the extension of the previous rally in oil prices boosts the resource-linked CAD and weighs negatively on the pair.
Oil prices are seen extending to the upside, adding to the previous 7% rise booked the day earlier after the US dollar slumped across the board. While markets cheered Venezuela’s attempts to call for OPEC and Non-OPEC producers meeting in a bid to boost prices. At the moment, WTI rises 0.82% near $ 32.60, while Brent advances 0.43% to trade above $ 35 mark.
While the oil-driven market sentiment continues to lead the CAD pair, attention shifts towards the US unemployment claims and factory orders data from the US for further momentum on the pair. Further, Friday’s labour market report from both the US and Canada will be closely eyed for fresh direction.
USD/CAD Technical Levels
To the upside, the next resistances are seen near 1.3700 (round number) and 1.3773/95 (Daily High/ 1h 20-SMA). To the downside, immediate support might be located at 1.3623/19 (100-DMA/ Dec 11 Low) and below that 1.3550/41 (psychological levels/ daily S2).
(Market News Provided by FXstreet)