USD/CAD bounces off 2-month lows as oil pulls back

By FXStreet FXStreet (Córdoba) – After hitting a fresh 2-month low, USD/CAD bounced and erased completely intraday losses, as the loonie gave up ground, moving in tandem with oil prices.

Crude oil faltered ahead of $50.00 a barrel after an EIA report showed US crude inventories rose more than expected last week. Oil prices fell and so did the Canadian dollar that snapped a 5-day winning streak against the greenback.

USD/CAD bounced from a low of 1.2971 back above the 1.30 mark. At time of writing, the pair is trading at 1.3035, little changed on the day.

USD/CAD key levels

On the upside, short-term resistances could be found at 1.3122 (100-hour SMA), followed by 1.3191 (50-day SMA) and finally 1.3235 (10-day SMA). On the downside, next supports align at 1.2971 (2-month low Oct 7), 1.2951 (Aug 12 low) and 1.2873 (100-day SMA).
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Source:: FX Street