USD/CAD retreats from 1.3100, focus on oil

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 22, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The Canadian dollar is now shedding some of its earlier gains vs. its neighbor, sending USD/CAD to the 1.3060/65 band.

    USD/CAD attention to oil, US data

    After climbing above the 1.3100 handle during the NA session on Monday, the pair sparked a leg lower as a recovery in the barrel of West Texas Intermediate lent further support to CAD.

    In the meantime, crude oil dynamics will remain the exclusive factor behind the pair’s price action, amidst a light docket in the US economy today, with only the flash manufacturing PMI due ahead of the weekly report on stockpiles by the API.

    USD/CAD significant levels

    As of writing the pair is retreating 0.28% at 1.3061 with the next support at 1.2919 (2016 low Mar.18) followed by 1.2827 (monthly low Oct.15 2015) and then 1.2124 (monthly low Jun.16). On the other hand, a break above 1.3276 (20-day sma) would aim for 1.3346 (200-day sma) and finally 1.3596 (38.2% Fibo of 1.4692-1.2919).

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