USD/CAD: Loonie seen extending gains
|The USD/CAD has declined sharply after breaking a Fibonacci at C$1.2720 with Canadian Dollar extending gains all the way up to C$1.2605 in line with the oil prices rising.
The USD/CAD is trading down 0.3% at around C$1.2610.
The US crude oil benchmark WTI rose as high as $59.98 a barrel reaching the highest level in a two-and-half year and it is s consolidating around that level.
Technical outlook
The sideways trend on USD/CAD has been invalidated by the exchange rate breaking on the downside. Strong technical support of C$1.2720 represented by 38.2% Fibonacci retracement of long-term appreciation of Loonie towards C$1.2097 cyclical low and peaking at C$1.2920 opened the way lower.
The daily chart indicates that the USD/CAD is moving lower for the seventh day in a row, bringing the Slow Stochastics indicator to the Oversold territory with USD/CAD facing 100-day moving average support at around C$1.2600 first before targeting lower levels at C$1.2470 represented by 28.2% Fibonacci retracement. Technical oscillators like Momentum and MACD all pointing downwards indicating further potential in a current move lower.
USD/CAD daily chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.