USD/CAD eyes 1.40, consolidates gains

By FXStreet FXStreet (Córdoba) – USD/CAD stabilized after a 180-pip rally and during the last hours it had been hovering around 1.3960, up 1.25% for the day.

The pair was boosted by a stronger US dollar and a decline in crude oil prices. The WTI barrel is trading below $35.00, slightly above the lowest level in year, down 1.60% for the day.

From the level it had a week ago, the pair is up 300 pips and since the beginning of December it climbed 630 pips or 4.65%.

USD/CAD: Key levels

The pair could correct lower, but as long as it remains above 1.3800, momentum will continue to favor the upside. Around 1.3800 a short-term uptrend line stands and if broken, the loonie could remove some bearish pressure.

On a wider perspective, the dominant trend is cleary bullish with price accelerating during the last two weeks, after breaking the 1.3450 – 1.3500 resistance. The 1.40 area appears now to be the next key resistance area, that could limit the US dollar.
For more information, read our latest forex news. …read more

Source:: FX Street