USD/CAD soars above 1.3100

By FXStreet FXStreet (Córdoba) – USD/CAD accelerated to the upside and reached the strongest level since last Friday at 1.3175, after breaking above yesterday’s highs.

The pair started to move with an upside bias during the European session. Greenback gained momentum after the release of US economic data while the loonie weakened amid a retreat of crude oil prices. The barrel (WTI) dropped from $48.00 to $46.40, losing almost 3%.

USD/CAD technical outlook

The pair is breaking an important downtrend line coming from last week highs, signaling an end to the bearish correction that appears to have found a bottom at 1.3037 (Nov 3 low). In the four hour charts price had risen above key EMAs (including 20, 50 and 200) gaining support for a continuation of the rally.

A decline below 1.3050, where the 20-day MA is located could open the doors for a bigger slide, with a possible target around October lows located at 1.2830/40.
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Source:: FX Street