USD/CAD rises above1.2500 as crude oil tumbles
- Loonie under pressure as WTI drops 4%.
- USD/CAD rises for the second day in a row.
The USD/CAD jumped to 1.2502 on American hours, even amid a weaker US dollar across the board. The sharp decline in crude oil prices weighed on the loonie. The WTI barrel is falling by 4%.
After the release of the US ISM manufacturing index, USD/CAD bottomed at 1.2452 and then bounced sharply to the 1.2500 area. As of writing, it is hovering around 1.2495, with a bullish tone intact.
The DXY is down just 0.07%, around 92.00, as US yields tumble. The 10-year dropped to 1.17%, the lowest since July 20, and on a daily basis, it could post the lowest close since February. In Wall Street, stocks are modestly higher.
Key resistance at 1.2530
If the USD/CAD finds more buyers, the next key level is the 1.2530 are. A break above should clear the way for an approximation to 1.2600 and would alleviate further the bearish pressure. On the flip side, in the very short-term, 1.2485 is the immediate support, followed by 1.2450 and last week low at 1.2420.
Technical levels
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.
