USD/CAD eases from peaks around 1.3280

The pair moves higher to the 1.3280 region, losing momentum afterwards.
The now soft tone in crude oil is weighing on CAD.
Fed’s VP R.Clarida is due to speak later.

Pablo Piovano FXStreet

USD/CAD has managed to move higher and clinch fresh multi-day peaks in the boundaries of 1.3280, although the up move lost some grip soon afterwards.

USD/CAD looks to oil, USD

Spot is up for the fourth consecutive session so far on Thursday, tracking the positive performance of the greenback and deriving some weakness from softer oil prices.

In fact, the barrel of West Texas Intermediate has faded the initial spike to levels above the $54.00 mark and is now navigating the mid-$53.00s.

Despite the ongoing decline, the prospect for CAD appears constructive in the longer run backed by the recent cautiously optimistic message from BoC’s Governor S.Poloz and Deputy Governor C.Wilkins and forecasts for a recovery in crude oil prices.

Moving forward, CAD will be in centre stage in light of tomorrow’s release of the critical labour market figures for the month of January.

USD/CAD significant levels

As of writing the pair is gaining 0.36% at 1.3260 and a breakout of 1.3279 (high Feb.7) would pave the way for a test of 1.3271 (38.2% Fibo of the October-December rally) and finally 1.3330 (55-day SMA). On the other hand, the next support emerges at 1.3205 (100-day SMA) followed by 1.3182 (10-day SMA) and then 1.3125 (20-0-day SMA).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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