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USD/CAD trims daily losses as oil retreats

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 4, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    USD/CAD managed to trim some of its daily losses as the loonie lost momentum in tandem with oil prices, which pulled back from highs and dipped into negative ground for the day during the American session.

    Crude oil prices started the day with a positive tone, with WTI futures jumping to a 3-day high of $33.57 a barrel, but failed to sustain gains and fell below $32.00 to trade down 1.7%.

    Inversely, USD/CAD bottomed out at 1.3638, setting its lowest level in two months, before bouncing above 1.3700 to a session high of 1.3753. At time of writing, the pair was trading at 1.3736, still 0.31% below its opening price.

    On Friday, employment figures from both Canada and the US will attract investors attention.

    USD/CAD levels to watch

    As for technical levels, short-term resistances are seen at 1.3796 (Feb 4 high), 1.3898 (50-day SMA) and 1.4015 (10-day SMA). On the flip side, a break below 1.3638 (Feb 4 low), would pave the way towards 1.3622 (Dec 11 low), 1.3600 (psychological level) and 1.3540 (100-day SMA).
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