USD/CAD climbs back above 1.4500 as oil recovery falters

By FXStreet FXStreet (Córdoba) – USD/CAD resumed the rise and it has almost erased intraday losses following a short-lived bounce in Canadian dollar in tandem with a recovery in oil prices.

USD/CAD continued to pullback from fresh 13-year highs and bottomed out at the 100-hour SMA at 1.4430 before finding support and turning back north. USD/CAD has managed to regain the 1.45 mark and it was last trading at 1.4515, still 0.27% below its opening price.

The loonie staged a comeback in sync with oil prices, as WTI futures climbed to $31.36 a barrel before faltering and retracing its early rally.

Still CAD remains on the back foot, trading near a 13-year low against the greenback, ahead of the Bank of Canada policy decision tomorrow, amid growing expectations the bank will cut rates.

USD/CAD levels to watch

As for technical levels, next resistances are seen at 1.4604 (Jan 18 high) and 1.4624 (Apr 24 2003 high). On the downside, immediate supports could be found at 1.4440/30 (100-hour SMA/Jan 19 low), 1.4342 (Jan 15 low) and 1.4310 (10-day SMA).
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Source:: FX Street