USD/CAD Off Lows, but Stays Below 1.31 as Oil extends Rally

USD/CAD Off Lows, but Stays Below 1.31 as Oil extends Rally

The Canadian dollar reversed more than half of previous losses and now remains strongly bid against its US counterpart in Europe, keeping USD/CAD deep in the red below 1.31 handle.

USD/CAD capped below 20-DMA at 1.3100

Currently, the USD/CAD pair drops -0.49% to 1.3085, hovering within a striking distance of session lows reached at 1.3071 earlier this session. The USD/CAD pair is seen making minor recovery attempts over the last few hours, but in vain, as the sellers are lined up near 5-DMA at 1.3109, sending the prices lower on every attempt to the upside.

The major extends weakness largely on the back of strengthening Canadian dollar amid rallying oil prices and as broadly muted US dollar. Meanwhile, Brent rallies +3.30% and WTI jumps +3.54%, both crude benchmarks moving off highs over the last hour.
Focus now remains on the Canadian employment numbers in absence of significant macro news from the American docket later today.

USD/CAD Technical Levels

To the upside, the next resistances are seen near 1.3109/1.3113 (5-DMA/ daily pivot) and 1.3150 (psychological levels). To the downside, immediate support might be located at 1.3064/45 (10-DMA/ daily S1) and below that 1.3014/00 (Apr 7 Low/ round number).

(Market News Provided by FXstreet)