USD/CAD: Loonie fails to benefit from oil price rebound

By FXStreet The Canadian dollar continues to get hammered by its US counterpart for the fifth straight session, driving USD/CAD closer towards 1.32 barrier.

USD/CAD trades well beyond 20-DMA at 1.3115

Currently, the USD/CAD pair gains 0.27% to 1.3174, having posted fresh session highs at 1.3182 in the last hour. The USD/CAD pair prolongs its upward trajectory, despite the ongoing robust recovery in the oil prices, as the prices track the moves in the US dollar against its major peers. The US dollar index trades 0.27% at 94.87, en route 95 handle. Meanwhile, Brent rallies +2.11% and WTI jumps +2.90%, both crude benchmarks moving off highs over the last hour.

Moreover, the loonie also remains unperturbed by upbeat expectations from the Ivey PMI report due later today, as the FOMC minutes remain the main focus and hence, markets favour the US currency expectant of hints on the Fed’s interest rates outlook for this year.

USD/CAD Technical Levels

To the upside, the next resistances are seen near 1.3200 (round number) and 1.3217/19 (Apr 5 & Mar 29 High). To the downside, immediate support might be located at 1.3115/1.3105 (20-DMA/ 1h 200-SMA) and below that 1.3074/71 (Apr 5 High/ daily S1).
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Source:: FX Street