USD/CAD Testing 6-Week Highs Near 1.3160

USD/CAD Testing 6-Week Highs Near 1.3160

23 May 2016, 12:27
Roberto Jacobs

USD/CAD Testing 6-Week Highs Near 1.3160

The US dollar extends its upward trajectory against its Canadian counterpart for the fifth straight session this Monday, with USD/CAD now targeting 1.32 handle amid persistent weakness in oil prices.

USD/CAD supported at 1.3100

Currently, the USD/CAD pair trades 0.33% higher at fresh session highs of 1.3159, having surpassed all three major classic resistances placed at 1.3130/35 and 1.3143. The CAD battering extends into a fifth day today as the recent strength in the greenback versus its major competitors, coupled with extension of last week’s losses in the black gold, collaborates to the bullish tone seen around the USD/CAD pair. Meanwhile, both crude benchmarks are down nearly -1.10%, on resurgence of global oversupply concerns.

Markets now look forward to Wednesday’s Bank of Canada (BOC) monetary policy decision for fresh direction on the Loonie, as the start of the week remains relatively data-light, with a public holiday being observed in Canada today.

USD/CAD Technical Levels

To the upside, the next resistances are seen near 1.3200 (round number) and 1.3286/1.3300 (Mar 28 High/ round number). To the downside, immediate support might be located at 1.3103/00 (5-DMA/ key support) and below that at 1.3033 (1h 200-SMA).


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