USD/CAD recovers from post-OPEC lows

USD/CAD has edged a tad higher on Thursday after losing more than 200 pips the previous day, with the dollar supported by an upward revision to US Q2 GDP.

The loonie rallied on Wednesday and dragged USD/CAD to a 6-day low of 1.3047 in tandem with oil prices after the Organization of the Petroleum Exporting Countries (OPEC) agreed on cutting output. The OPEC agreed to reduce output to between 32.5 million and 33 million barrels per day. It was the first time that OPEC has agreed to cut production since during the global financial crisis in 2008. 

However, USD/CAD has trimmed some of its steep losses as markets stabilized and the US dollar strengthened. At time of writing, USD/CAD is trading at 1.3110, up 0.24% on the day, with a high set at 1.3118.

USD/CAD levels to consider

As for technical levels, next supports are seen at 1.3003/00 (100-day SMA/psychological level), 1.2909 (Sep 9 low) and 1.2850 (Sep 8 low). On the flip side, resistances could be faced at 1.3115 (Sep 29 high), 1.3150 (10-day SMA) and 1.3229 (200-day SMA).