- The pair trades on a positive footing around 1.3280.
- The sharp drop in crude oil weighs on the Canadian currency.
- FOMC meeting, Canadian GDP figures next of relevance.
The selling bias around the Canadian Dollar is lifting USD/CAD to test daily highs in the vicinity of 1.3280 on Monday.
USD/CAD weaker on oil sell off, looks to trade
Spot has started the week on a positive footing today and is partially reverting the deep pullback seen last Friday. So far, decent support appears to have emerged in the 1.3200 neighbourhood, reinforced by the 100-day SMA.
CAD is suffering today’s retracement in prices of the West Texas Intermediate, which is retreating more than 2% to the area below the key $52.00 mark per barrel, always on the back of renewed concerns over a global slowdown and uncertainty around the US-China trade dispute.
Moving forward, the FOMC meeting on Wednesday will be the salient event this week, seconded in relevance by the publication of monthly GDP figures in the Canadian economy on Friday.
USD/CAD significant levels
As of writing the pair is gaining 0.47% at 1.3277 and a breakout of 1.3288 (10-day SMA) would expose 1.3327 (38.2% Fibo of October-December up move) and finally 1.3374 (high Jan.24). On the other hand, immediate support lines up at 1.3196 (100-day SMA) followed by 1.3179 (2019 low Jan.9) and then 1.3159 (monthly low Dec.3 2018).
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