USD/CAD: headed further south towards 1.2969?
|Currently, USD/CAD is trading at 1.3054, down -1.09% on the day, having posted a daily high at 1.3200 and low at 1.3048.
WTI stronger, tests $44.80 post-EIA
WTI was choppy around the release of the crude oil inventories that rose +118K vs -2250K consensus. Gasoline inventories fell -894k. The moves were not massive as a result but USD/CAD has dropped on stronger oil with the 1.30 handle now under threat. From our standpoint, this positive reaction of the loonie is due to the concurrence of two separate actions," explained analysts at Swissquote Bank:
"First, the Canadian economy was able to surmount the massive oil correction that started in 2014 as oil producers improved efficiency, especially in the shale industry. Furthermore, the economy is back on track again and is close to its long-term average yearly growth rate of between 3% and 4%."
USD/CAD levels
USD/CAD cleared 1.3100 testing fresh multi-month lows at levels last seen in late February. "Momentum signals are bearish, and the RSI has pushed below 30. There are no major support levels ahead of 1.3000 and the Jan 31 low at 1.2969. The Jan 31 low coincides with the 61.8% retracement of the May 2016-May 2017 rally," explained analysts at Scotiabank. To the upside on a reversal, the main level to breach is 1.3390.
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.