USD/CAD rises to test key level

USD/CAD broke to the upside, after moving all day in a range between 1.3235 and 1.3190. A decline in crude oil prices after the EIA report pushed the pair to the upside. It printed a fresh daily high at 1.3268.

From the highs it pulled back and it was trading at 1.3240/45, up 40 pips from yesterday’s closing price. The rally was capped below the 1.3280 area, that capped the upside during the last three trading sessions.

Between oil and Yellen

After EIA reported a decrease in US crude oil inventories by nearly 1.9 million barrels during last week versus an expected build up of almost 3 million barrels, the WTI dropped below $45.00 but then rebounded trimming losses.

In the US, Federal Reserve Janet Yellen presented testimony at a Committee and said that there is 'no fixed timetable for raising rates'.

USD/CAD levels to watch

To the upside, resistance levels might be seen at 1.3280 (weekly high), followed by the 1.3300 handle and 1.3370 (Mar 3 low). On the opposite direction, support might now be located at 1.3190 (daily low), 1.3165 (Sep 27 low) and 1.3135 (Sep 26 low).