USD/CAD jumps to 1.3630 on Oil sell-off, strongest since May 2017

A +3% drop in Oil pushes USD/CAD back on to 1.36 handle, 18-month tops.
Oil-price action likely to remain the key driver amid a lack of fresh economic drivers and thin trading.

Dhwani Mehta FXStreet

The USD/CAD pair finally breaks the upside consolidative channel on Thursday and reaches the highest levels since May 2017 at 1.3633, as the Loonie continues to face headwinds from the oil-price sell-off.

The US oil, WTI, dropped over 3% and tested the 45 support amid mounting global growth concerns and supply glut worries, as the OPEC output cuts will come into effect next month. The resource-linked Loonie ran into offers once again near 1.3570 region and fell to the cheapest levels in 18-months beyond the 1.36 level. Canada is heavily dependent on its revenues from oil exports.

However, the bulls appear struggling to take on the upside towards the midpoint of the 1.36 handle, as the US dollar remains heavy across its main competitors amid a tumble in the US equity futures and Treasury yields, as the US political risks grow.

The immediate focus is on the US API crude stocks data due later on Thursday for fresh direction on oil prices, which eventually have a significant impact on the CAD pair, as trading remains light heading into the New Year celebrations.

USD/CAD Technical Levels

USD/CAD

Overview:
    Today Last Price: 1.3623
    Today Daily change: 53 pips
    Today Daily change %: 0.391%
    Today Daily Open: 1.357
Trends:
    Previous Daily SMA20: 1.3436
    Previous Daily SMA50: 1.3273
    Previous Daily SMA100: 1.3143
    Previous Daily SMA200: 1.3054
Levels:
    Previous Daily High: 1.4134
    Previous Daily Low: 1.3568
    Previous Weekly High: 1.3602
    Previous Weekly Low: 1.3372
    Previous Monthly High: 1.336
    Previous Monthly Low: 1.3048
    Previous Daily Fibonacci 38.2%: 1.3784
    Previous Daily Fibonacci 61.8%: 1.3918
    Previous Daily Pivot Point S1: 1.3381
    Previous Daily Pivot Point S2: 1.3192
    Previous Daily Pivot Point S3: 1.2816
    Previous Daily Pivot Point R1: 1.3946
    Previous Daily Pivot Point R2: 1.4322
    Previous Daily Pivot Point R3: 1.4511

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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