USD/CAD trades below 1.16 handle

FXStreet (Mumbai) - The Canadian dollar strengthened against the US counterpart today, snapping two days of losses from the previous week, as oil prices continues to trade in green for the second straight session.

THE USD/CAD pair trades now at 1.1584, down -0.16% on the day, having posted day’s low of 1.1578 levels few hours ago. The Canadian dollar declined against the greenback on Friday, after the nation's retail sales beat forecast, while core inflation ticked down in November. The loonie regained strength today as rising oil prices continued to lend support, given that oil is Canada’s top export product.

Moreover, broad based US dollar weakness against major currencies also added to the downside in USD/CAD. The dollar index, which measures the greenback’s strength against major six currencies, retreated from multi-year to trade at 89.69, down 0.16 % on the day.

USD/CAD Levels to consider

To the upside, the next resistance is located at 1.1634 (Dec 19 High) and above which it could extend gains to 1.1647 (Dec 18 High) levels. To the downside immediate support might be located at 1.1565 (Dec 18 Low) and below that at 1.1520 levels.

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