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USD/CAD falls to new 10-month lows as oil climbs,

The Canadian dollar resumes its rally. After it withstood the recovery of the US dollar, the loonie makes a new move to the upside. USD/CAD reached a new low of 1.2914, the lowest since September 2016.

The C$ advances alongside oil prices. While OPEC production is on the rise due to a ramp up in production from Nigeria and Libya, it seems that US shale output has reached a peak. We have already learned that the numbers of rigs rolled over and that production is slowing down.

WTI Crude Oil is trading above $47, a level which used to be a line of support. This is not a great leap in comparison to yesterday, but still a boost.

More:  The Canadian dollar doesn’t need oil – it has the strong local economy

Independence Day(s)

Another reason for the rise today and not yesterday is the timing of the US and Canadian Independence Days. Canada celebrated 150 years and enjoyed a long weekend. Canadian traders were away but now they are back to boost their currency. US traders are away today for the 4th of July festivities.

Support awaits the pair at 1.2820, followed by 1.2750. Resistance is at 1.3080.

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.