USD/CAD Challenges Highs Near 1.33, Oil Plummets

USD/CAD Challenges Highs Near 1.33, Oil Plummets

24 March 2016, 15:31
Roberto Jacobs
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USD/CAD Challenges Highs Near 1.33, Oil Plummets

The greenback remains on a firmer footing vs. its Canadian neighbour on Thursday, now lifting USD/CAD to fresh peaks in the 1.3280/85 band.

USD/CAD higher on oil drop

The pair’s upside is now gathering further traction following the softer tone in crude oil prices, with the barrel of West Texas Intermediate down nearly 3% around $38.60 at the time of writing.

On the US data front, Initial Claims have come in a tad better than expectations during last week, while Durable Goods Orders have contracted 2.8% during February, less than initially forecasted albeit reverting the previous 4.2% expansion.

Next on tap will be Services PMI ahead of the US oil rig count tracked by driller baker Hughes, while Q4 GDP figures will take centre stage on Good Friday.

USD/CAD significant levels

As of writing the pair is advancing 0.64% at 1.3289 and a break above 1.3352 (200-day sma) would expose 1.3596 (38.2% Fibo of 1.4692-1.2919) and then 1.3681 (100-day sma). On the flip side, the initial support lines up at 1.2919 (2016 low Mar.18) followed by 1.2827 (monthly low Oct.15 2015) and then 1.2124 (monthly low Jun.16).

(Market News Provided by FXstreet)

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