USD/CAD bounces higher to 1.3050 as Oil sell-off extends

Dhwani Mehta FXStreet

The US dollar fought back the bids from its Canadian counterpart in the European session, with USD/CAD having brought an end to its three-day decline.

USD/CAD extends beyond 1.3000

Currently, the USD/CAD pair jumps +0.48% to fresh session highs of 1.3048, recovering sharply from session lows struck at 1.2969 in the Asian opening trades. The USD/CAD pair witnessed steep gains this Friday, after the oil-price sell-off intensified during the European trading hours and weighed heavily on the resourced-linked Loonie. Canada is highly dependent on oil revenues as Oil is its top export product.

Moreover, resumption of the recent uptrend in the US dollar against its major rivals on increased expectations of upbeat US Q1 GDP revision, also added to the robust recovery in the CAD pair. Moreover, the PCE annualized index along with the GDP price index will be released, while Fed Chair Janet Yellen’s speech will be also closely followed.

USD/CAD Technical Levels

To the upside, the next resistances are seen near 1.3058/60 (10 & 5-DMA) and 1.3077/97 (1h 100-SMA/ daily R2). To the downside, immediate support might be located at 1.2982 (20-DMA) and below that at 1.2900/1.2886 (round number/ 50-DMA).

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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