The slide in crude prices pushed the Canadian dollar lower, taking the USD/CAD pair to the session high of 1.2645 levels.
Loonie weakens as Crude extends losses
Crude prices in the US fell to a low of USD YSD 49.13/barrel ahead of the weekly supply report in the US, which is expected to show inventories rose by 3.8 million barrels last week. Consequently, the USD/CAD pair rose to a high of 1.2645.
Moreover, the rally in the Canadian dollar stalled as crude prices resumed the fall on fears of rising supply glut and a slowdown in China. Meanwhile, a strong US jobs data and the subsequent rise in the US Treasury yields further added to the bullish momentum in the USD/CAD pair.
USD/CAD Technical Levels
The pair currently trades 0.44% higher at 1.2642 levels. The immediate resistance is seen on the 4-hour chart at 1.2675 levels, above which the pair could rise to 1.2771 levels. On the flip side, support is seen on the 4-hour chart at 1.2589 and 1.2539 (hourly 200-SMA) levels.
Loonie weakens as Crude extends losses
Crude prices in the US fell to a low of USD YSD 49.13/barrel ahead of the weekly supply report in the US, which is expected to show inventories rose by 3.8 million barrels last week. Consequently, the USD/CAD pair rose to a high of 1.2645.
Moreover, the rally in the Canadian dollar stalled as crude prices resumed the fall on fears of rising supply glut and a slowdown in China. Meanwhile, a strong US jobs data and the subsequent rise in the US Treasury yields further added to the bullish momentum in the USD/CAD pair.
USD/CAD Technical Levels
The pair currently trades 0.44% higher at 1.2642 levels. The immediate resistance is seen on the 4-hour chart at 1.2675 levels, above which the pair could rise to 1.2771 levels. On the flip side, support is seen on the 4-hour chart at 1.2589 and 1.2539 (hourly 200-SMA) levels.
