USD/CAD Hits Fresh Weekly Lows as CAD Tracks Oil Gains
USD/CAD fell
sharply to fresh weekly lows dragged down but a stronger Canadian
dollar, which benefited by an unexpected drop in US oil inventories.
According
to the Energy Information Administration, US crude oil inventories fell
by -3.41 million barrels in the week ended May 6, against expectations
of a 0.714 million barrels build, while output fell 0.261% to 8.802
million.
After the news, oil soared and the loonie moved along,
sending USD/CAD to a low of 1.2843, last seen on Friday. At time of
writing, the pair is trading at 1.2833, recording a 0.49% loss on the
day.
USD/CAD technical levels
In terms of
technical levels, next supports could be found at 1.2785 (May 5 low)
and 1.2737 (20-day SMA) ahead of 1.2696 (May 4 low). On the flip side,
resistances are seen at 1.2940 (May 11 high), 1.2973 (50-day SMA) and
1.3015 (May 9 high).
