USD/CAD jumps to mid-1.3300s as WTI tumbles

Haresh Menghani FXStreet

The greenback selling pressure seems to have abated, helping the USD/CAD pair to extend its recovery move from session lows near 1.3300 region.

Currently trading around mid-1.3300s, the pair turned positive for the third consecutive session amid a modest greenback recovery. In fact, the key US Dollar Index has managed to bounce off over 5-week lows near 99.85 region and is supportive of the pair's recovery from session low.

Adding to this, a fresh wave of selling pressure around WTI crude oil, which tends to derive demand for the commodity-linked currency - Loonie, also assisted the pair to hold above 100-day SMA support and extend recovery from two-week lows touched on Thursday.

On the economic data front, the release of Canadian Wholesale Sales data, followed by the Chicago Fed National Activity Index and the speech by Chicago Fed President Charles Evans from the US, would now be looked upon for some impetus during the NY trading session.

Technical levels to watch

Immediate resistance is pegged near 1.3370-75 area, above which the pair seems all set to head towards reclaiming the 1.3400 handle, en-route 1.3425-30 horizontal resistance.

On the downside, sustained weakness back below 1.3315-10 immediate support now seems to drag the pair back below 100-day SMA support near 1.3295 region towards retesting 1.3275 support area (Thursday's low) ahead of mid-1.3200s.

1 Week
1 Month
1 Quarter

1 Week

Avg Forecast 1.3358

44% Bullish
44% Bearish
11% Sideways

Bias Neutral

1 Month

Avg Forecast 1.3405

59% Bullish
29% Bearish
12% Sideways

Bias Bullish

1 Quarter

Avg Forecast 1.3509

65% Bullish
24% Bearish
12% Sideways

Bias Bullish

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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