USD/CAD Deflates from Highs ahead of US Data

USD/CAD Deflates from Highs ahead of US Data

5 May 2016, 13:34
Roberto Jacobs
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USD/CAD Deflates from Highs ahead of US Data

The Canadian dollar is now advancing for the first time after two consecutive pullbacks vs. the greenback, taking USD/CAD to the 1.2830 area.

USD/CAD lower as oil jumps

Crude oil prices are renewing its support to CAD today, up nearly 3% after wildfires in Canada continue to threaten oil sands production and have forced the evacuation of the city of Fort McMurray in western Canada.

The greenback, in the meantime, remains well bid vs. the rest of its major rivals today ahead of the US calendar: Initial Claims and the speech by St. Louis Fed J.Bullard.

USD/CAD significant levels

As of writing the pair is losing 0.28% at 1.2837 and a breakdown of 1.2729 (20-day sma) would open the door to 1.2461 (2016 low May 3) and then 1.2124 (monthly low Jun.24 2015). On the other hand, the next hurdle lines up at 1.2886 (high May 4) followed by 1.2984 (23.6% Fibo of 1.4692-1.2458) and finally 1.2992 (high Apr.18).


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