USD/CAD takes U-turn as oil rallies

By FXStreet FXStreet (Córdoba) – USD/CAD has turned sharply lower trimming most of its intraday gains as the loonie strengthened tracking oil’s rally.

The CAD weakened at the beginning of the session as Canadian current account deficit contracted less than expected, with USD/CAD reaching a peak of 1.3317, before taking an U-turn. USD/CAD dropped back to the 1.3200 area and it was last trading at the 1.3230 region, still up 0.16% on the day.

In the absence of first-tier economic data, trading has been driven by month-end flows, which sent oil to its highest level in a month just below $48.00 a barrel.

USD/CAD levels to watch

As for technical levels, next resistances are seen at 1.3317 (Aug 31 high) and 1.3352 (Aug 25 high). On the flip side, supports could be found at 1.3203/00 (10-day SMA/psychological level) and 1.3165 (Aug 28 low).
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Source:: FX Street