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USD/CAD retreats from 1.3300 as oil jumps to $45
FXStreet (Córdoba) - USD/CAD turned to the upside on Asian hours and extended the upside during the European session. Price peaked at 1.3299 and stabilized. Recently retreated sharply as crude oil prices soared.
The pair dropped from the 1.3300 area and reached 1.3211. Currently it trades at 1.3220 slightly above the level it closed yesterday, but momentum favor the loonie. A break below 1.3210, where the hourly 20-SMA stands, could expose daily lows that lie at 1.3165.
“Right now the 1.3150/70 area has provided decent intra-day support over the past week, but we see the broader USDCAD range between 1.2850-1.3200 zone, and especially with how the September Fed is priced. A break into this lower range should not be viewed as a major inflection point, but a normalization of where USDCAD should be trading at the moment we think”, wrote analysts from TD Securities.
WTI rises further
Crude oil rallied more than $2 during the last hours and reached a fresh 2-week high above $45.00. Now is trading at $44.40, up more than 8% from last week levels. The rally of the price of the barrel boosted the loonie, pushing USD/CAD back toward daily lows.
The pair dropped from the 1.3300 area and reached 1.3211. Currently it trades at 1.3220 slightly above the level it closed yesterday, but momentum favor the loonie. A break below 1.3210, where the hourly 20-SMA stands, could expose daily lows that lie at 1.3165.
“Right now the 1.3150/70 area has provided decent intra-day support over the past week, but we see the broader USDCAD range between 1.2850-1.3200 zone, and especially with how the September Fed is priced. A break into this lower range should not be viewed as a major inflection point, but a normalization of where USDCAD should be trading at the moment we think”, wrote analysts from TD Securities.
WTI rises further
Crude oil rallied more than $2 during the last hours and reached a fresh 2-week high above $45.00. Now is trading at $44.40, up more than 8% from last week levels. The rally of the price of the barrel boosted the loonie, pushing USD/CAD back toward daily lows.
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
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