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28 Aug 2015
USD/CAD defends 1.32 barrier as Oil looks for direction
FXStreet (Mumbai) - The Canadian dollar recovers partial losses versus its American counterpart in the mid-European session, with USD/CAD hovering above 1.32 handle, as the loonie lies at the mercy of oil prices which seem to be going nowhere, albeit clinged to yesterday’s gains.
USD/CAD holds above 1.3200
Currently, the USD/CAD pair trades 0.14% higher at 1.3218, easing-off session highs reached at 1.3237 some minutes ago. The Canadian dollar halted its 2-day rally and edged lower versus the greenback on Friday as oil prices took a breather in its recent upsurge, although remains poised for the first weekly rise in eight weeks. Oil is Canada’s top export product.
Brent crude surged more than 9% overnight to above $47 per barrel, up from $43 per barrel on Wednesday while WTI futures rose from $39 per barrel to almost $43. As fpr today’s trade, WTI remained fairly volatile on Friday, seesawing from the red to the green and now trading -0.41% lower at $ 42.38.
However, further upside in USD/CAD remains capped mainly on broad USD weakness on the back of a minor correction. The US dollar index, the virtual gauge of greenback’s relative strength, now trades 0.11% lower at 95.64.
Whilst there is no key data expected out of Canada today, traders will be watching for the release of further US economic releases later as well as any comments that may come out of the Jackson Hole conference where global policymakers are meeting.
USD/CAD Technical Levels
To the upside, the next resistance is located at 1.3307 (Aug 27 High) levels and above which it could extend gains to 1.3350 (Aug 26 High) To the downside, immediate support might be located at 1.3167 (Today’s Low) levels and below that at 1.3100.
USD/CAD holds above 1.3200
Currently, the USD/CAD pair trades 0.14% higher at 1.3218, easing-off session highs reached at 1.3237 some minutes ago. The Canadian dollar halted its 2-day rally and edged lower versus the greenback on Friday as oil prices took a breather in its recent upsurge, although remains poised for the first weekly rise in eight weeks. Oil is Canada’s top export product.
Brent crude surged more than 9% overnight to above $47 per barrel, up from $43 per barrel on Wednesday while WTI futures rose from $39 per barrel to almost $43. As fpr today’s trade, WTI remained fairly volatile on Friday, seesawing from the red to the green and now trading -0.41% lower at $ 42.38.
However, further upside in USD/CAD remains capped mainly on broad USD weakness on the back of a minor correction. The US dollar index, the virtual gauge of greenback’s relative strength, now trades 0.11% lower at 95.64.
Whilst there is no key data expected out of Canada today, traders will be watching for the release of further US economic releases later as well as any comments that may come out of the Jackson Hole conference where global policymakers are meeting.
USD/CAD Technical Levels
To the upside, the next resistance is located at 1.3307 (Aug 27 High) levels and above which it could extend gains to 1.3350 (Aug 26 High) To the downside, immediate support might be located at 1.3167 (Today’s Low) levels and below that at 1.3100.