USD/CAD turns south and hits daily lows

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 24, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    USD/CAD turned lower during the American afternoon and hit fresh daily lows as the Loonie strengthened alongside with oil prices after data showed US crude inventories increased last week, but distillates and gasoline stocks slumped.

    EIA reported a 3.502 million barrel increase, slightly above the 3.427 million expected but well below the 7.1 million build reported by API on Tuesday.

    USD/CAD fell more than 120 pips from daily highs and struck a low of 1.3735 before finding support as WTI futures spiked to a high of $32.36 a barrel. At time of writing, USD/CAD is trading at 1.3752, 0.29% below its opening price.

    USD/CAD levels to watch

    In terms of technical levels, supports are seen at 1.3694 (Feb 23 low), 1.3661 (Feb 22 low), 1.3638 (Feb 4 low) and 1.3619 (100-day SMA). On the other hand, next resistances line up at 1.3852/58 (20-day SMA/Feb 24 high) and 1.3910 (Feb 16 high) ahead of 1.4000 (psychological level/50-day SMA).
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