CAD gains with a mild recovery in Crude

Omkar Godbole FXStreet Contributor

FXStreet (Mumbai) - The Canadian dollar gained strength against its US counterpart, tracking the mild recovery in the Crude prices. The USD/CAD pair snapped a two-day rally seen on the back of a sharp fall in Crude prices.

USD/CAD rejected at 10-DMA

The pair was driven lower after it faced rejection at the 10-DMA located located at 1.2491. The CAD gained as the crude April futures in the US recovered from the low of USD 51.88/barrel to trade at USD 52.16/barrel; up 0.63%. Crude prices managed to recover from lows despite the inventories in the US rising to record highs, as per the EIA data released yesterday. It remains to be seen whether Crude prices and the CAD manage to hold on to their gains for the rest of the day.

USD/CAD Technical Levels

The immediate resistance is seen at 1.2491 (10-DMA) above which gains could be extended to 1.2544 levels On the flip side, support is seen at 1.2458 (5-DMA) and 1.2421 levels.

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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