USD/CAD breaks key uptrend line as crude oil jumps

By FXStreet FXStreet (Córdoba) – USD/CAD lost more than 70 pips during the American session, weakened amid a decline of the US dollar in the market and as crude oil prices soar.

USD/CAD slides below 1.3200

The pair recently bottomed at 1.3155 reaching the lowest level in a week but still remains above the 1.3100 area and also on top of September lows.

The short term technical perspective shows the loonie with momentum. The recent slide brought the price to trade below an uptrend line originated on July 27 lows; the line offered support last week. With USD/CAD below an important dynamic support it could extend the decline toward the lower limit of the trading range of the last three weeks located at 1.3110/20.

USD down, WTI up up

Greenback and the yen are the worst performers in the currency on a session with risk appetite. The Dow Jones is up 0.50% and the Nasdaq 0.2% on the day before Fed’s decision.

Crude oil is up by more than 5%. During the last two hours the WTI barrel rose from 45.50 to 47.35; and then pulled back to 46.95. Gold is also posting important gains as it climbs 1.75%.
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Source:: FX Street