Search ForexCrunch

   “¢   A sharp intraday slide in crude oil prices weighs heavily on Loonie.
   “¢   A subdued USD demand does little to hinder the intraday up-move

The USD/CAD pair finally broke out of its post-FOMC consolidative phase and spiked to two-day tops, beyond mid-1.3400s in the last hour.

The pair picked up the pace during the early North-American session trading session and built on the previous session’s goodish recovery from sub-1.3400 level, or over one-week lows.  

A sharp intraday slump in crude oil prices, now down nearly 2%, turned out to be one of the key factors weighing heavily on the commodity-linked currency – Loonie and driving the pair higher.

The intraday positive move seemed rather unaffected by a subdued US Dollar price action, which failed to capitalize on the overnight rebound led by not so dovish FOMC statement on Wednesday.

Hence, a follow-through up-move, beyond weekly highs resistance near the 1.3475-80 region and possibly towards reclaiming the key 1.3500 psychological mark, now looks a distinct possibility.

Technical levels to watch