USD/CAD testing lows near 1.3250 as Oil jumps +1%

Dhwani Mehta FXStreet

The USD/CAD pair extends its consolidative-mode into early Europe, although looks vulnerable below 1.3250 levels amid more-than 1% jump in oil prices seen so far this Monday.

USD/CAD stuck between 5-DMA and 10-DMA

The Loonie remains supported near mid-1.32s as oil prices jumped higher in Asia, reversing last week’s heavy sell-off.

Moreover, subdued trading activity seen in the US dollar against its major rivals also collaborated to downside bias in the CAD pair. The USD index trades modestly lower just below 97 handle.

On Friday, USD/CAD witnessed a volatile NA session, initially spiking above 1.33 handle on the release of worse-than expected Canadian CPI figures.

However, the spot failed to sustain the rally and dropped back to the familiar range near 1.3250 levels, after the greenback slumped across the board on dovish Fedspeaks.

Later today, the major will closely track oil-price action fur fresh incentives ahead of the US durable goods data due to be reported in the NA session.

USD/CAD Technical levels

The next resistance can be seen at 1.3300/09 (round figure/ Friday’s high), 1.3336 (20-DMA) and 1.3363 (200-DMA). Next support to the downside can be found at 1.3200 (zero figure/ key support), 1.3165 (4-month lows) and 1.3150 (key psychological support).

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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