USD/CAD clings to gains near 1.4100

By FXStreet FXStreet (Córdoba) – USD/CAD has entered a consolidation phase after hitting fresh 12-year highs above 1.4100 on Wednesday, as the risk off environment continues to weigh on commodities and linked currencies.

USD/CAD broke decisively above previous highs at the 1.4000/20 zone and climbed to its highest level since Aug 2003 at 1.4107 as oil prices extended losses. Having retreated slightly from highs, USD/CAD is clinging to a 0.59% daily gain around 1.4080.

Not even a surprising decline in oil inventories was able to help crude prices or the CAD, as the report also showed huge builds in gasoline and distillate.

USD/CAD levels to watch

In terms of technical levels, immediate resistances could be found at 1.4107 (12-year high, Jan 6), 1.4171 (monthly high Aug 2003) and 1.4195 (monthly high Jul 2003). On the other hand, supports are seen at 1.3910 (10-day SMA), 1.3835 (20-day SMA) and 1.3811 (Jan 4 low).
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Source:: FX Street