USD/CAD: making a minor yet shallow recovery; below 1.31 still

By FXStreet USD/CAD has started to make a minor recovery of the BoC sell-off that threw the Loonie out of the tree for a hard landing on 1.3051 lows.

A number of factors coincide with the better offered tone with oil dropping after the EIA data. The BoC, that left rates unchanged as widely expected, accompanied this data when in the statement, the BoC noted that economic growth will be “weaker than predicted” in the second quarter because of the wildfires in Alberta, which prompted to curb oil production.

USD/CAD levels

USD/CAD dropped below the 100 sma at 1.3123 and fell to a low of 1.3051 ahead of the 200 sma on the same time frame at 1.3033. The 19th May support line was, however, broken on the move and brings in the 18th May highs of 1.2993 and and on a break opens up the 1.2950 psychological target. On a recovery to the upside, analysts at Westpac sighted that short and medium term signals point to USD/CAD to continue higher towards 1.3370.
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Source:: FX Street