USD/CAD – offered at confluence of key technical levels amid oil rally

Offered tone around USD/CAD strengthened around 1.2987 (23.6% of 1.4690-1.2461) which more or less coincides with the 100-DMA level of 1.2984 amid rally in oil prices at both the sides of the Atlantic.

Oil rally supporting CAD

At the time of writing, oil prices were up 1%. Consequently, the bid tone around CAD strengthened in Asia, pushing the USD/CAD pair to a session low of 1.2926. The pair also trades below the 50-DMA level of 1.2947.

The pair dropped in the previous two trading sessions and is looking strong for the third straight day. USD/CAD remains at the mercy of the oil prices ahead of the Canadian housing price index and weekly US initial jobless claims release.

USD/CAD Technical Levels

The immediate support is seen at 1.29 (zero figure), under which prices could target 1.2832 (July 4 low). A violation there could yield 1.2655 (June 8 low). On the other hand, a recovery above 1.2947 (50-DMA) could yield a re-test of 1.2987 (23.6% of 1.4690-1.2461). A break higher would expose 1.3140 (July 11 high).