USD/CAD soars to fresh 14-month highs as crude oil extend losses

Matías Salord FXStreet

USD/CAD continued to rebound from 1.3535 and recently reached at 1.3669, the highest level since February 2016. The Canadian dollar is among the weakest currencies of the American session affected by a decline in crude oil prices. The WTI barrel extended losses. It is down more than 2%, trading around $48.60.

Earlier today, the pair dropped sharply from the previous 14-month high (1.3645) to 1.3530 in a few minutes after US President Trump spoke about renegotiating NAFTA. After a period of consolidation USD/CAD started to rise. From the lows, it gained more than a hundred pips, not only erasing losses but also breaking to fresh highs.

Currently, the pair stands around 1.3640, as it moves off daily highs. Mixed data did not weaken the US rally. Initial jobless claims rose 257K (vs 241K expected), March Durable Goods Orders gained 0.7% (vs +1.2%) and pending home sales dropped 0.8% (vs -1.0%). Canada and the US will report on GDP growth tomorrow.
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Technical levels

The pair continues to hold a strong bullish momentum with the confirmation above the 1.3600 handle. In the daily chart, the RSI is at extreme levels but still not showing signs of turning, that would point to some correction. To the upside, resistance levels might be seen at 1.3680 and then 1.3700 (psychological). On the opposite direction, support now could be seen at 1.3625 (Apr 25 high), 1.3585 and 1.3525 (daily 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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