USD/CAD retakes 1.4500, oil eyed

By FXStreet FXStreet (Edinburgh) – The Canadian dollar is now trading almost unchanged vs. its American neighbour today, with USD/CAD bouncing off los in the 1.4490 area.

USD/CAD attention to oil, risk trends

Crude oil prices still remain the exclusive drivers behind CAD’s price action, with the barrel of West Texas Intermediate currently advancing above the critical $30.00 mark.

It is worth mentioning that international powers have finally lifted sanctions against Iran over the weekend, adding to the already existing concerns over the supply glut and thus exposing crude prices to further downside.

After briefly testing fresh cycle highs just above the 1.4600 handle in early trade, the pair has corrected lower to sub-1.4500 levels following the recovery in the barrel of WTI.

Ahead in the week, the next significant event in Canada will be the BoC interest rate decision, with market consensus slightly biased towards a 25 bps rate cut.

USD/CAD significant levels

At the moment the pair is losing 0.05% at 1.4521 and a breakdown of 1.4097 (20-day sma) would aim for 1.3793 (low Dec.24) and finally 1.3748 (3-month uptrend). On the other hand, the next hurdle lies at 1.4611 (high Jan.18) followed by 1.4672 (high Apr.24 2003) and then 1.4946 (high Apr.7 2003).
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Source:: FX Street