USD/CAD faces double whammy, slumps to 200-DMA

USD/CAD reversed course and dropped sharply from five-week highs, on the back of higher oil prices and fresh selling seen in the US dollar against most of its major peers.

USD/CAD fails to hold above 1.3200

Currently, the USD/CAD pair drops -0.40% to 1.3161, hovering close to fresh session lows of 1.3154 reached last hour. USD/CAD came under fresh selling pressure and almost tested 200-DMA support this Monday, as the major faced double whammy from rising oil prices on one hand, while ongoing corrective slide in the US dollar across the board also dragged the spot lower. Meanwhile, both crude benchmarks rally over +1.60% and USD index drops -0.24% to 95.80 levels.

Looking ahead, markets await the housing data from the US ahead of a speech from BOC’s Governor Poloz and the FOMC statement due later this week, for fresh impetus on the prices.

USD/CAD Technical Levels

To the upside, the next resistances are seen near 1.3185 (5-DMA) and 1.3200 (round figure). To the downside, immediate support might be located at 1.3150 (200-DMA) and below that at 1.3117 (10-DMA).