USD/CAD challenges lows near 1.3780

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 24, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The Canadian dollar is now facing renewed buying pressure, dragging USD/CAD back below the 1.3800 handle.

    USD/CAD focus on oil

    CAD continues to sway in response to crude oil dynamics, now gathering some traction as WTI is attempting a rebound from lows in the vicinity of the $31.00 mark. It is worth mentioning that prices for the back gold have taken a hit yesterday after Saudi oil minister ruled out an output cut and Iranian officials deemed the output freeze proposal as laughable.

    On the data front in Canada, the only event will be the speech by BoC Deputy Governor L.Schembri, while New Home Sales, the EIA report and speeches by Fed’s Bullard and Kaplan are expected in the US.

    USD/CAD significant levels

    As of writing the pair is up 0.11% at 1.3783 and a surpass of 1.3854 (20-day sma) would expose 1.3979 (55-day sma) and then 1.4103 (high Feb.3). On the other hand, the next support lines up at 1.3635 (low Feb.4) ahead of 1.3636 (100-day sma) and finally 1.3256 (200-day sma).
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