USD/CAD: Loonie Rebounds Alongside Oil, 1.2800 Eyed

USD/CAD: Loonie Rebounds Alongside Oil, 1.2800 Eyed

5 May 2016, 07:54
Roberto Jacobs
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USD/CAD: Loonie Rebounds Alongside Oil, 1.2800 Eyed

The Canadian dollar halted its 2-day decline and rebounded higher versus the American dollar in the Asian session, sending USD/CAD sharply lower from twelve-day peaks shy of 1.29 handle.

USD/CAD heading towards daily pivot at 1.2816

Currently, the USD/CAD pair drops -0.38% to fresh session lows of 1.2827, revering sharply from 1.2870 highs. The Loonie is seen benefiting from a solid rebound in the oil prices after news that the forest fire rage in Canada still persists and state of emergency has been declared. Meanwhile, the US oil jumps +1.85%, Brent rallies +1.37%.

Looking ahead, the pair will continue to monitor developments surrounding oil markets, as markets will also focus on the Canadian building permits data due later in the NY session.

USD/CAD Technical Levels

To the upside, the next resistances are seen near 1.2870/86 (daily & May 4 High) and 1.2900/35 (round number/ daily R1). To the downside, immediate support might be located at 1.2800 (round number) and below that 1.2750/46 (psychological levels/ daily S1).


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