USD/CAD faces double whammy amid weaker DXY and higher Oil

The bearish consolidation phase in the greenback across the board combined with rising oil prices pose double whammy to the USD/CAD pair as we step into a fresh week.

USD/CAD: 20-DMA support at 1.3441 eyed?

Currently, the USD/CAD pair drops -0.27% to flirt with session lows of 1.3466, having faced rejection at daily R1 of 1.3518. The USD/CAD pair extends losses into a second day today as the greenback stalled its recent bullish momentum and now looks to correct last week’s extensive rally against tis major peers.

Additionally, strengthening oil prices amid renewed hopes of a potential OPEC output cut deal to be reached next week, also lent support to the resource-linked Loonie.

Meanwhile, markets moved past below estimates Canadian CPI report, as the major remains at the mercy of the USD dynamics. Looking ahead, focus now remains on the Canadian wholesale sales data amid a data-empty US calendar today.

USD/CAD Technical Levels

To the upside, the next resistances are seen near 1.3500 (round figure) and 1.3518 (daily R1) and from there to 1.3566 (Nov 18 high). To the downside, immediate support might be located at 1.3441 (20-DMA) and below that at 1.3400 (zero figure) and at 1.3381 (Nov 10 low).