USD/CAD: Bears look to 1.3500 following the WTI spike
|- WTI rebounds to $41 mark, knocks-off USD/CAD.
- US dollar bleeds in the NA session as risk-on mood persists.
- The spot risks a break below the 1.3500 level.
Broad-based US dollar weakness combined with the WTI rebound has wreaked havoc for USD/CAD, as it meanders near two-day lows of 1.3520, down 0.55% on a daily basis.
The US oil reversed a temporary dip induced by an unexpected build in the EIA crude stockpiles and briefly regained $41. The rebound in WTI put a fresh bid under the resource-linked Canadian dollar.
Meanwhile, the selling interest around the US dollar remains unabated, with the pain further exacerbated by the renewed uptick in the S&P 500 index. Markets dismissed the mixed US coronavirus stats, as they still weigh the odds of an economic recovery.
In the absence of relevant macro-economic news, the broad market sentiment and the dollar flows will continue to direct the near-term direction in the CAD pair.
USD/CAD technical levels
“The 200-day SMA level of 1.3500 holds the key to the pair’s south-run towards 1.3430,” explains FXStreet’s Analyst Anil Panchal notes. Meanwhile, any recovery attempt could face initial resistance at 5-DMA of 1.3556.
USD/CAD additional levels
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