After the Canadian dollar was hit by weak trade balance and with USD/CAD hitting a high of 1.3141, it then changed course and dipped 100 pips.
At 1.3040, the pair is getting close to the 1.3012 low seen after the Fed decision and the very round 1.30 level.
Here is the immediate move:
Oil prices seem closely correlated: WTIÂ Crude is up over 4% to $48.32 and Brent Crude broke above the $50 mark and trades 5%+ on the day at $51.66.
In the not so distant past, the Canadian dollar failed to take advantage of rising oil prices: it suffered when oil suffered but didn’t really enjoy the rises in the price of the black gold. This may have changed now.
It is important to remember that there is still quite a lot of supply in the world and this rise in prices might not be really based on fundamentals, to say the least.
USD/CAD levels
1.30 is the most obvious support level. 1.2950 and 1.2860 ar are the next levels to watch on the downside.
On the upside we have 1.3140, which was the high today followed by 1.3220 and 1.33.
Here is how it looks on the chart.
