USD/CAD remains above daily lows despite crude rally

• USD/CAD heads for the lowest close since September. 
• Despite gains vs USD, CAD is lower against most of its rivals. 
• CAD fails to extend gains despite higher crude oil prices. 

The USD/CAD pair bottomed hours ago at 1.2316, the lowest levels since September 25. From the lows, it rebounded modestly finding resistance at 1.2355. It was trading at 1.2340/45, down 70 pips headed toward the lowest close in almost four months. 

Today it is having the third decline in-a-row as the USD sell-off intensifies. The Dollar Index dropped below 90.00 for the first time since 2014 and fell to 89.15. Despite rising sharply against the US Dollar, the loonie is the weakest among majors. 

The loonie failed to extend gains versus the greenback during the last hours despite the spike higher in crude oil prices. The WTI broke above $65.00 a barrel for the first time since December 2014 after the release of the US Crude Inventories report. Crude peaked at $65.40 while USD/CAD remained away from daily lows. 

The trend continues to point to the downside and the dollar still remains under pressure, although the speed of the depreciation eased during the last hours. 

Technical levels 

To the downside, immediate support levels might be located at 1.2315 (daily low), 1.2300 (psychological) and 1.2240/50. On the upside, resistance is seen at 1.2350/55 (US session high), 1.2370 (last week low) and 1.2395/1.2400.