USD/CAD falls to 1.3310 on EIA report and rebounds

Matías Salord FXStreet

USD/CAD dropped quickly to 1.3313, hitting a fresh daily low but then it bounced to the upside, easing most of the losses.

The pair was trading around 1.3365 and dropped sharply to the lows after the release of EIA crude oil inventories report that showed a decrease of more than 0.553 million barrels during last week versus a forecast of an increase by nearly 1.7 million barrels. The price of crude oil jumped boosting the Loonie.

From 1.3310/15 the pair rebounded and it was trading at 1.3350/58, marginally higher for the day, but still below the level it had before the EIA report. Earlier it peaked at 1.3380. Price continues to consolidate around the 1.3340/70 area, confirming last week gains.

Technical leves

To the upside, resistance level might be located at 1.3380 (daily high) followed by the key 1.3400 handle. On the opposite direction, support now could be seen at 1.3310/15 (daily low / 100-hour moving average), 1.3300 and 1.3275 (Oct 25 low).

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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