USD/CAD extends gains and rises to test 1.3000

USD/CAD rose further during the American session moving closer to the 1.3000 area. The Canadian dollar dropped across the board during the last two hours despite the stabilization in crude oil prices.

The CAD was affected  by the sharp decline in crude oil. The WTI barrel lost more than 4% today and it found support above $46.00. During the last hours it moved modestly to the upside, still under $47.00.

The pair moved with a bullish bias all day and gained momentum during the last hours. It started Tuesday hovering around 1.2840 and recently printed a fresh daily high at 1.3001.  Currently is testing the 1.30 handle. USD/CAD rose today almost 150 pips, having the best performance since the day of the Brexit referendum results.

Between MA

Price yesterday fell back below the 20-day moving average but today it rose back above, giving signals that the movement to the downside could be exhausted. To the upside, last week the rally was capped by the 100-DMA that stands at 1.3025. A daily close above the mentioned level could open the doors for a medium term rally of the US dollar, particularity it then it breaks the 1.3180 zone.