USD/CAD reverses and erase gains as oil recovers

The Canadian dollar has been able to recover ground. A weak US dollar and a recovery in crude oil prices pushed USD/CAD to the downside. The pair that earlier today climbed on top of 1.3400, to the highest in a week, has fallen below 1.3350. 

A resumption of the decline? 

Today it peaked at 1.3408 but it failed to hold above 1.3400 and during the last two hours it accelerated the decline. Recently it printed a fresh daily low at 1.3342. Currently is trading at 1.3345/50, around the same level it closed yesterday. 

Short-term momentum turned bearish significantly during the last hour. A break below 1.3340 could open the doors for a bigger slide, increasing the probability of a resumption of last week’s decline. In the opposite direction, a consolidation on top of 1.3400 could give support to the US dollar for a bullish extension. 

USD/CAD technical levels 

To the downside, support levels might be located at 1.3340 (daily low), 1.3300/05 (Mar 17 & 20 low) and 1.3260/65 (Mar 21 low). On the upside, resistance could be seen at 1.3370/75 (20-hour moving average), 1.3405/10 (daily high) and 1.3435 (Mar 3 & 7 high).