USD/CAD clocks 8-1/2 month high

USD/CAD trades at its highest level since Feb end on account of the broad based USD rally and oil price weakness.

Nears 50% Fibo

The pair is trading within a touching distance from 1.3576 (50% of Jan 2016 high – May 2016 low). The American dollar is ruling the roost due to a sharp rise in the treasury yields post Trump victory.

Meanwhile, oil trading at three-week low is not helping the matters for the CAD either. The spot was last seen trading around 1.3555 levels.

USD/CAD Technical Levels

A break above 1.3576 (50% of Jan 2016 high – May 2016 low) would open doors for 1.36 (zero figure). A violation there could yield 1.3654 (Feb 18 low). On the other hand, a breakdown of support at 1.3549 (previous week’s high) would expose 1.35 (zero figure) and 1.3457 (5-DMA).