USD/CAD inched higher and reached fresh 6-year highs during the European session, as the loonie continues to weaken on the back of low commodity prices and BoC looser policy.
USD/CAD climbed to a high of 1.2475 during the European session, but lacked momentum to clear the 1.2500 resistance area and entered a sideways phase in a narrow range, tracking oil moves. At time of writing, the pair is trading at 1.2445, little changed on the day.
The Canadian dollar accelerated losses last week after the Bank of Canada surprise decision to cut the overnight rate by 25 bps to 0.75% in response to lower oil prices, which are taking their toll on the economy.
USD/CAD levels to watch
In terms of technical levels, if USD/CAD breaks decisively above 1.2475, next resistances could be found at 1.2500/04 (psychological level/Apr 21 2009 high) and not much until 1.2600 (psychological level). On the other hand, supports are seen at 1.2433 (daily low), 1.2360 (Jan 23 low) and 1.2312 (Jan 22 low).
USD/CAD climbed to a high of 1.2475 during the European session, but lacked momentum to clear the 1.2500 resistance area and entered a sideways phase in a narrow range, tracking oil moves. At time of writing, the pair is trading at 1.2445, little changed on the day.
The Canadian dollar accelerated losses last week after the Bank of Canada surprise decision to cut the overnight rate by 25 bps to 0.75% in response to lower oil prices, which are taking their toll on the economy.
USD/CAD levels to watch
In terms of technical levels, if USD/CAD breaks decisively above 1.2475, next resistances could be found at 1.2500/04 (psychological level/Apr 21 2009 high) and not much until 1.2600 (psychological level). On the other hand, supports are seen at 1.2433 (daily low), 1.2360 (Jan 23 low) and 1.2312 (Jan 22 low).
