USD/CAD Climbs to Highs Near 1.3170

USD/CAD Climbs to Highs Near 1.3170

24 May 2016, 08:19
Roberto Jacobs

USD/CAD Climbs to Highs Near 1.3170

The greenback is extending its march north during the first half of the week, now lifting USD/CAD to the area of daily tops near 1.3170.

USD/CAD focus on oil, BoC

Spot remains firm backed by a solid upside momentum in the US dollar, advancing for the fourth consecutive week so far and on its way to test the critical barrier at 1.3200 the figure.

CAD continues to lose ground following a softer tone in crude oil prices, with the barrel of West Texas Intermediate extending its leg lower from last week’s 2016 peaks near $49.00 to the current area below the $48.00 mark.

Data wise in US, New Home Sales are due followed by the weekly report on crude stockpiles by the API. In Canada, the BoC will hold its meeting tomorrow, expected to leave its monetary stance unchanged.

USD/CAD significant levels 

As of writing the pair is gaining 0.18% at 1.3166 and a break above 1.3219 (high Apr.5) would aim for 1.3312 (38.2% Fibo of 1.4692-1.2458) and finally 1.3366 (200-day sma). On the other hand, the next support lines up at 1.2986 (23.6% Fibo of 1.4692-1.2458) ahead of 1.2899 (20-day sma) and then 1.2768 (low May 12).


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