USD/CAD finds resistance again at 1.3400

USD/CAD moved off daily highs after the rally again found resistance around the 1.3400 handle. From a fundamental perspective, crude oil prices moved off lows helping the Loonie in the market. 

The pair peaked earlier at 1.3401 and then dropped to 1.3361. It is trading at 1.3380/85, marginally above yesterday’s closing price. The WTI barrel is falling 0.65%, above $47.50 after falling earlier toward $47.00. 

Lower crude oil prices and a stronger dollar against commodity currencies gave support to the pair on Monday. It still remains moving sideways, with the upside capped by the 1.3400 area. A break higher and a consolidation on top could open the doors to more gains. 

Levels to watch 

As mentioned, to the upside, the key short-term resistance is located around 1.3400/05 (last week and daily high), followed by 1.3435 (Mar 3 high) and 1.3475 (Mar 13 high). On the downside, support could be seen at 1.3355, 1.3310/15 (Mar 23 low) and 1.3275 (Mar 16 low).