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
Author

Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

















