USD/CAD rallies on oil to test 50 dma

By FXStreet USD/CAD has rallied on the back of oil bouncing with the recent data showing that US oil production is down 0.3% w/w and down 0.4% y/y along with EIA US weekly oil inventories that were -754k vs + 2850k expected.

WTI rallied with an initial spike to $29.23 and the 50 sma on the hourly chart, settling back to $27.80 at time of writing. USD/CAD has been as low as 1.3832 while the high has been 1.3953 while spot trades back to 1.3936 currently.

Meanwhile, Yellen was not as dovish as the market might have been expecting and sticks to the presumption that all will be well in the medium term. Inflation target will be met at 2%, global growth will continue and improve due to monetary policy.

USD/CAD levels

Technically, USD/CAD burst through the 200 sma on the hourly chart that is at 1.3907 currently. The pivot is located at 1.3875 with R1 at 1.3964, R2 at 1.4051 and R3 at 1.4140. To the downside, S1 is located at 1.3788. For now, the 50 dma at 1.3946 is resisting the upside. A break there opens 1.4100 and the 20 dma at 1.4132.
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Source:: FX Street