USD/CAD breaks 1.3130 and extends gains

USD/CAD rises further on the back of a weaker Loonie.
US elections underway results expected to start arriving at 00:00 GMT.
Crude oil extends slide, hitting the Loonie.

Matías Salord FXStreet

The USD/CAD pair rose further during the US session amid lower crude oil prices and a modest rebound of the greenback. The loonie is among the worst performers affected by the decline in crude oil prices. The pair broke above 1.3130 and rose to 1.3143, hitting the highest level since last Thursday. As of writing trades at 1.3135/40, up 30 pips for the day.

The move to the upside, took place following the breakout earlier today of a relevant technical level (1.3115). The pair was boosted from a recovery of the greenback but most price action remains limited, amid US mid-term elections. Also, the loonie weakened across the board on the back of a sharp slide in crude oil prices. The black gold fell to the lowest in seventh months.

The key event to watch over the next hours will be the result of the elections. Results are likely to start coming out around 00:00 GMT and could influence on the greenback and also the Canadian dollar.

USD/CAD Levels to watch

To the upside, the immediate resistance is seen at 1.3145 (Oct 29, 30 high), 1.3170 (Oct 31 high) and 1.3200. On the flip side, now 1.3130 is the immediate support followed by 1.1315 and 1.3070. The key level to watch is a short-term uptrend line that stands at the moment around 1.3040. A break lower could signal a potential peak for the pair.

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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