USD/CAD Falls Below 1.3000 to 5-Month Lows
USD/CAD broke below 1.3000 and accelerated the decline. It bottomed at 1.2911, hitting the lowest level since October. The pair then rebounded as crude oil trimmed gains.
Currently is trading at 1.2985/90, a hundred pips below yesterday’s closing price. Since the beginning of the week, it has fallen 2.50%.
Crude oil prices are volatile today. The WTI barrel jumped toward $40.00 after the EIA report but recently bounce to the downside, falling under $39.00. The latest move removed strength from the Canadian dollar.
USD/CAD approaching October lows
The pair is testing March lows and a consolidation below would expose October lows that lie at 1.2830. According to some analysts, a decline toward the mentioned area could trigger a sharp rebound to the uspide.
If USD/CAD falls below 1.2830 it would be trading at the lowest since July 2015; with the next medium-term resistance seen around 1.2650.
(Market News Provided by FXstreet)