USD/CAD leaps to new monthly high as WTI drops below $52

The USD/CAD pair's upsurge accelerated during the NA session as crude oil prices dropped sharply following the EIA report, hurting the CAD against the greenback. The pair rose to its highest level since March 15 at 1.3475 before easing back and is now trading at 1.3470, recording a daily gain of 0.7%.

U.S. crude stocks fell 1 million barrels in the week ending April 14, according to the U.S. Energy Information Administration. However, despite a decreasing inventory, the output continued to rise in the U.S. At the moment the barrel of WTI is losing 1.5% at $51.60. On the other hand, the US Dollar Index remains near daily highs around 99.70,  further supporting the bullish movement of the pair. 

Abhishek Kumar, senior energy analyst at Interfax Energy’s Global Gas Analytics in London told Reuters that rising oil output in the U.S. remains the predominant bearish factor for prices despite growing anticipation that OPEC will extend a self-imposed cap on its oil production in the upcoming May meeting.

Technical outlook

The pair is facing the first resistance at 1.3500 (psychological level) ahead of 1.3535 (Mar. 9 high) and 1.3600 (Dec. 28 high/psychological level). To the downside, supports could be found at 1.3380 (daily low), 1.3300 (psychological level) and finally 1.3340 /50-DMA).