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27 Aug 2015
USD/CAD: Canadian dollar rallies along with Oil
FXStreet (Mumbai) - The Canadian dollar extends gains versus its American counterpart for the second straight session on Thursday, with USD/CAD deep in the red near 1.32 handle, as rebounding oil prices continue to boost the sentiment around the resource-linked loonie.
USD/CAD rejected at 1.3305
Currently, the USD/CAD pair trades -0.49% lower at 1.3229, miring near session lows reached at 1.3214 some minutes ago. The Canadian dollar remains strongly bid and accelerated gains further after the US oil prices surpassed the key $ 40 level.
WTI extends its correction higher after previous drop which continues to push the Canadian dollar higher against the US currency.
However, further downside in USD/CAD remains cushioned mainly on broad USD strength as global equities stabilize boosting the risk currency. The US dollar index, the virtual gauge of greenback’s relative strength, now trades 0.11% higher at 95.40.
Whilst there is no key data expected out of Canada today, traders will be watching for the release of further US GDP data later as well as any comments that may come out of the Jackson Hole conference where global policymakers are meeting.
USD/CAD Technical Levels
To the upside, the next resistance is located at 1.3305 (Today’s High) levels and above which it could extend gains to 1.3350 (Aug 26 High) To the downside, immediate support might be located at 1.3214 (Today’s Low) levels and below that at 1.3157 (Aug 24 Low).
USD/CAD rejected at 1.3305
Currently, the USD/CAD pair trades -0.49% lower at 1.3229, miring near session lows reached at 1.3214 some minutes ago. The Canadian dollar remains strongly bid and accelerated gains further after the US oil prices surpassed the key $ 40 level.
WTI extends its correction higher after previous drop which continues to push the Canadian dollar higher against the US currency.
However, further downside in USD/CAD remains cushioned mainly on broad USD strength as global equities stabilize boosting the risk currency. The US dollar index, the virtual gauge of greenback’s relative strength, now trades 0.11% higher at 95.40.
Whilst there is no key data expected out of Canada today, traders will be watching for the release of further US GDP data later as well as any comments that may come out of the Jackson Hole conference where global policymakers are meeting.
USD/CAD Technical Levels
To the upside, the next resistance is located at 1.3305 (Today’s High) levels and above which it could extend gains to 1.3350 (Aug 26 High) To the downside, immediate support might be located at 1.3214 (Today’s Low) levels and below that at 1.3157 (Aug 24 Low).