USD/CAD retreats from multi-yr highs as oil rebounds

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 14, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - The USD/CAD pair failed to sustain at cycle highs and dropped sharply to low near hourly 20-SMA at 1.4333, before climbing back above the mid-point of 1.43 handle.

    USD/CAD recovers from 1.4339 lows

    Currently, the USD/CAD pair rises 0.12% higher at 1.4356, recovering briefly from a dip to session lows at 1.4339. The Canadian dollar trims gains and recovers ground somewhat against its American counterpart as the oil prices stalled its downward spiral and embarked upon a recovery mode since early Europe.

    At the moment, both crude benchmarks are staging a minor recovery from multi-year troughs, with the US oil (WTI) up 1% around $ 30.70, while the Brent advances 0.61% to 30.27.

    However, the ongoing upbeat momentum in the US dollar against its major peers continues to cushion the downside in the CAD pair. The USD index now gains +0.15% and trade around 99.10 levels.

    Focus now remains on the Canadian NHPI and the US jobless claims, while oil price action will continue to dominate further moves.

    USD/CAD Technical Levels

    To the upside, the next resistances are seen near 1.4400-1.4450 (April 2003 levels). To the downside, immediate support might be located at 1.4278/71 (1h 50-SMA/ 5-DMA) and below that 1.4212/1.4200 (1h 100-SMA/ round number).
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