USD/CAD bounces and climbs toward 1.3280

By FXStreet FXStreet (Córdoba) – USD/CAD bounced fresh daily lows to highs in a few minutes amid a decline in crude oil prices and on a low volume session.

The pair dropped after the beginning of the American session and bottomed at 1.3231, the lowest level since last Friday but then bounce toward the key short term resistance area located around 1.3280 and it actually traded momentarily above hitting at 1.3283 a fresh daily high.

Currently it trades at 1.3270/75, around the same level it closed on yesterday as it continues to consolidate following last week’s rally. Today it bounced to the upside, after crude oil prices broke to the downside. The WTI barrel was trading around $43.70 and dropped quickly hitting two week lows under $43.00. The loonie is the worst performer among commodity currencies on Wednesday.

USD/CAD: Levels to watch

To the upside, immediate resistance might be located at 1.3280/85 (daily high), 1.3315/20 (November highs) and 1.3360 (August highs). On the opposite direction, support might lie 1.3230 (daily low), 1.3200 (psychological level) and 1.3130/35 (20-day MA).
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Source:: FX Street