USD/CAD looking to stabilize around 1.3130

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Apr 6, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The Canadian dollar is recovering part of yesterday’s sell off vs. its American neighbor, now taking USD/CAD to the 1.3135/30 band.

    USD/CAD eyes on oil, PMI

    The pair is coming down from yesterday’s multi-day peaks above the 1.3200 mark, bolstered by a sudden recovery of crude oil prices while the USD seems to have lost some upside momentum.

    Ahead in the day, Canadian PMI tracked by Ivey is due ahead of the weekly report on crude oil inventories gauged by the EIA. It is worth noting that API reported crude stockpiles have decreased by 4.3 million barrels during last week (Tuesday).

    USD/CAD significant levels

    As of writing the pair is losing 0.02% at 1.3135 and a breakout of 1.3290 (23.6% Fibo of 1.4692-1.2858) would open the door to 1.3384 (200-day sma) and finally 1.3539 (55-day sma). On the flip side, the immediate support is located at 1.2858 (2016 low Mar.31) ahead of 1.2827 (monthly low Oct.15 2015) and finally 1.2124 (monthly low Jun.16).
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