USD/CAD corrects lower to test 1.3150 as Oil bounces

Dhwani Mehta FXStreet

The US dollar is seen losing ground versus its Canadian counterpart in the mid-Asian trades, sending USD/CAD further away from five-tops reached at 1.3190 a day before.

USD/CAD losing sight of 1.32 handle

Currently, the USD/CAD pair drops 0.10% to 1.3159, hovering close to fresh session lows struck at 1.3156. USD/CAD extends its corrective slide in the mid-Asian trades, as a recovery in oil prices offer some respite to the CAD bulls after yesterday’s sell-off.

Both crude benchmarks paused the downward spiral and edged higher this session as markets cheered a less than forecast build in US crude reserves, the API report showed. Meanwhile, Brent rises +0.36% to $ 47.27, while the US oil gains +0.47% to trade just ahead $ 45 barrier.

Meanwhile, the major largely ignored the ongoing strength in the USD index backed by a firmer USD/JPY pair, and extends lower amid a relatively calmer session this Wednesday. Markets now look forward to BOC governing council member Wilkins speech due ahead of the EIA crude inventory report likely to be published later in the NA session.

USD/CAD Technical Levels

To the upside, the next resistances are seen near 1.3171 (200-DMA) and 1.3191 (5-week highs). To the downside, immediate support might be located at 1.3100 (round figure) and below that at 1.3029 (50-DMA).

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Bullish	Neutral	High
1H	Bullish	Neutral	Low
4H	Bullish	Overbought	Low
1D	Strongly Bearish	Oversold	Shrinking
1W	Bearish	Neutral	Low
Updated Sep 13, 02:30 GMT

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.

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