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USD/CAD extends recovery above 1.39, ignores Oil rebound

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 10, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    The Canadian dollar loses ground once again and fails to benefit from the oil price rebound seen in the Asian trades, sending USD/CAD to fresh session highs above 1.39 handle.

    USD/CAD testing hourly 200-SMA

    Currently, the USD/CAD pair rises 0.30% to 1.3910, retreating from fresh session highs reached at 1.3915, where the hourly 200-SMA intersects. The USD/CAD pair extends its recovery mode into Asia mainly on the back of correction after the pair dropped sharply to 1.3785 region on Tuesday.

    Moreover, the greenback halted the selling spiral against its major rivals, which also aided the recovery in USD/CAD. While the commodity-currency completely ignored the rebound in the black gold after an almost 6% drop witnessed in the last US session. Both crude benchmarks are seen rebounding over 2% so far this session.

    In the day ahead, amid a lack of significant economic updates from North America, focus will remain on the Yellen’s testimony and the EIA weekly stockpiles report for further momentum on the pair.

    USD/CAD Technical Levels

    To the upside, the next resistances are seen near 1.3961/80 (Feb 9 & 8 High) and 1.4000 (round number). To the downside, immediate support might be located at 1.3878/77 (1h 20-SMA/ daily pivot) and below that 1.3836 (1h 100-SMA).
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