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USD/CAD rises above 1.39 as oil drops

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

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - The offered tone around CAD gathered pace as oil prices dropped, pushing the USD/CAD pair to a session high of 1.3905 levels.

    Eyes 50-DMA

    The spot could easily test 50-DMA seen at 1.3924 levels if oil prices extend the drop. Both the benchmarks – WTI and Brent – were up earlier today, before the selling pressure returned. Prices now trade at least 1% lower.

    Consequently, the USD/CAD pair recovered from the low of 1.3840 to trade just above 1.39 levels. With no major data due today the pair is at the mercy of the action in the oil prices.

    USD/CAD Technical Levels

    The spot currently trades around 1.3895. The immediate resistance is seen at 1.3924 (50-DMA), above which prices could test 1.3980 (38.2% of 1.2832-1.4690). On the other hand, a break below 1.3840 (daily low) could send the pair lower to 1.3761 (50% of 1.2832-1.4690).
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