USD/CAD through 1.4300 on oil softness

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 26, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Edinburgh) - The Canadian solar is following the rest of the risk-associated assets on Tuesday, sending USD/CAD to test session highs above 1.4300 the figure.

    USD/CAD stronger on crude oil drop

    The barrel of West Texas Intermediate has returned to sub-$30.00 levels today, eroding a big part of last week’s sharp (albeit brief) correction higher to the vicinity of the $33.00 mark and adding further downside pressure to CAD.

    Collaborating with the weaker tone around the Canadian currency, a fresh wave of risk aversion continues to hit the markets in response to a sharp pullback in the Chinese equity markets, today shedding more than 6%.

    On the data front, US Consumer Confidence, the S&P-Case/Shiller index and Markit’s Services PMI are all due later in the NA session.

    USD/CAD significant levels

    As of writing the pair is up 0.23% at 1.4304 with the next resistance at 1.4692 (high Jan.20) followed by 1.4946 (high Apr.7 2003) and then 1.5000 (psychological handle). On the other hand, a break below 1.4111 (low Jan.22) would aim for 1.3818 (3-month uptrend) and finally 1.3516 (100-day sma).
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