14 Mar 2016
USD/CAD: uptick capped at hourly 50-MA
Oil price drop helped USD/CAD recover from Friday’s four-month low, but the bullish move failed to take the pair above hourly 50-MA level of 1.3268 levels.
CAD tracks oil
Canadian dollar trades on a weak footing as oil prices at both sides of the Atlantic dropped on Iran news. Brent and WTI fell more than 1% each, still, USD/CAD is up just 0.36%. The pair had moved back above 1.33 levels on Friday after the release of weak Canadian employment figure.
However, oil regained bid tone in the NY session, pushing the USD/CAD to a low of 1.3268 levels. With no major data due for release ahead in the day, the pair remains at the mercy of oil price gyrations.
USD/CAD Technical Levels
The spot currently trades around 1.3260. The immediate hurdle is seen at 1.3270 (76.4% Fibo of 1.2832-1.4690), ahead of a major resistance at 1.3303 (200-DMA) and 1.3436 (Nov 23 high). On the other hand, a break below support at 1.3211 (daily low) could see spot drift lower to Friday’s low of 1.3167, which if taken out could see the pair test 1.30 handle.
CAD tracks oil
Canadian dollar trades on a weak footing as oil prices at both sides of the Atlantic dropped on Iran news. Brent and WTI fell more than 1% each, still, USD/CAD is up just 0.36%. The pair had moved back above 1.33 levels on Friday after the release of weak Canadian employment figure.
However, oil regained bid tone in the NY session, pushing the USD/CAD to a low of 1.3268 levels. With no major data due for release ahead in the day, the pair remains at the mercy of oil price gyrations.
USD/CAD Technical Levels
The spot currently trades around 1.3260. The immediate hurdle is seen at 1.3270 (76.4% Fibo of 1.2832-1.4690), ahead of a major resistance at 1.3303 (200-DMA) and 1.3436 (Nov 23 high). On the other hand, a break below support at 1.3211 (daily low) could see spot drift lower to Friday’s low of 1.3167, which if taken out could see the pair test 1.30 handle.