USD/CAD briefly falls below 1.3000

USD/CAD continued to move lower over the last hours, briefly sliding below the 1.30 mark, helped by higher oil prices despite news that EIA has increased slightly its US crude-output estimate for 2016 and 2017.

USD/CAD fell to a daily low of 1.2980 but quickly regained the 1.3000 level. It was last trading around 1.3005, recording a 0.84% loss on the day.

Tomorrow, the Bank of Canada is widely expected to keep its key interest rate unchanged again this week but to take a more dovish approach regarding the economy.

USD/CAD levels to watch

In terms of technical levels, next supports are seen at 1.2970 (10-day SMA), 1.2938 (50-day DMA) and 1.2876 (Jul 7 low). On the flip side, resistances could be found at 1.3139 (Jul 11 high), 1.3187 (May 24 high) and 1.3218 (Apr 5 high).