USD/CAD eases below 1.3400, Trump became US President

After advancing to fresh multi-month tops beyond the 1.3500 handle, USD/CAD lost some upside momentum and is now returning to the vicinity of the 1.3400 area.

USD/CAD focus on Trump, oil

The pair advanced further on Wednesday following the unexpected lead by Republican candidate Donald Trump, who is just 4 electoral votes away of being the new US President.

CAD has also suffered the substantial drop in crude oil prices, with the barrel of West Texas Intermediate coming down to test fresh 2-month lows in the proximity of the $43.00 mark after the API reported late on Tuesday another build in US crude supplies, this time of nearly 4.5 million barrels.

Looking ahead, markets are expected to open sharply lower reflecting the Trump’s victory, while there are no scheduled releases in the US/Canadian dockets other than the DoE weekly report on crude inventories.

USD/CAD significant levels

As of writing the pair is up 0.81% at 1.3395 facing the next up barrier at 1.3525 (high Nov.4) followed by 1.3575 (50% Fibo of the 2016 drop) and finally 1.3839 (61.8% Fibo of the 2016 drop). On the other hand, a break below 1.3309 (low Nov.8) would aim for 1.3180 (55-day sma) and then 1.3002 (low Oct.19).