USD/CAD: Sell-off Stalls as Oil Trims Gains
Canadian dollar’s tight correlation with oil continues remains intact; with USD/CAD sell-off stalling near Wednesday’s low given oil has trimmed gains.
Off lows, but still down 0.67%
Pair has recovered slightly from the low of 1.3232, but is still down 0.67% on the day around 1.3257 levels. Brent prices clocked a high of $41 after IEA monthly report said prices may have bottomed out. However, oil trimmed gains and that helped the currency pair avoid dropping below March 9 low of 1.3228 levels.
The spot remains at the mercy of oil prices, which may witness sharp action following the release of Baker Hughes US oil rig count report release later today.
USD/CAD Technical Levels
The immediate hurdle is seen at 1.3270 (76.4% of 1.2832-1.4690), above which prices could test resistance at 1.3361 (10-DMA) and 1.3542 (61.8% of 1.2832-1.46900. On the other hand, a break below 1.3228 (Mar 9 low) would expose 1.3135 (38.2% of 1.0620 – 1.4690) and 1.31 handle.
(Market News Provided by FXstreet)
