USD/CAD regains bid tone as oil trims gains

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 8, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The offered tone around Canadian dollar strengthened as oil prices retreated from 2016 highs, sending USD/CAD to session high of 1.3360 levels.

    Back above 200-DMA

    The spot failed to its 200-DMA yesterday for the first time in September 2014. Pair dipped below the same (200-DMA at 1.3287) for a brief moment only to rise back to a session high of 1.3359 as oil prices surrendered gains.

    Brent prices clocked a high of $41.46, before falling back to trade largely unchanged on the day around $40.82 levels. Consequently, the bid tone around USD/CAD improved. Given the light US economic calendar, the spot is at the mercy of the action in oil prices.

    USD/CAD Technical Levels

    The immediate hurdle is seen at 1.34, which if taken out shall open doors for a rise to 1.3457 (Sep 29 high). On the other hand, a break below 1.3287 (200-DMA) could see prices drift lower to 1.32 handle.
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