The Canadian dollar is giving away part of the recent advance vs. its American peer on Tuesday, taking USD/CAD back above the 1.3300 handle.
USD/CAD focus on oil
The continuation of the rally in crude oil prices – with the barrel of WTI above $37.00 and Brent beyond $40.00 - has been lending support to the Canadian dollar for the last weeks, acting as the main driver behind the pair’s sharp correction lower to fresh 4-month lows around 1.3260 posted on Monday.
On the USD-side, the greenback remains under pressure ahead of the FOMC meeting due next week and amidst increasing doubts regarding the likeliness of further rate hikes by the Fed throughout the current year.
USD/CAD significant levels
As of writing the pair is advancing 0.37% at 1.3323 facing the next resistance at 1.3596 (20-day sma) followed by 1.3678 (100-day sma) and then 1.3861 (high Feb.24). On the flip side, a breakdown of 1.3262 (low Mar.7) would open the door to 1.3034 (monthly low Nov.3 2015) and finally 1.2827 (monthly low Oct.15 2015).
(Market News Provided by FXstreet)
