USD/CAD extends pullback from 8-month highs

USD/CAD came under renewed pressure during the New York session and dropped to 4-day lows as the loonie received a boost from higher oil prices.

USD/CAD dropped nearly a full cent throughout the day and bottomed out at 1.3457 weighed by the advance oil prices and a broad USD softness after the rally seen over the last sessions. At time of writing, the pair is trading at 1.3460, down 0.69% on the day. USD/CAD had printed an 8-month high of 1.3588 on Monday.

Oil prices climbed to near $46 a barrel, having recovered from below $43 a barrel. Later on Tuesday, API is due to release its weekly report. Official data from the Energy Information Administration will be released Wednesday.

USD/CAD technical levels

In terms of technical levels, next resistances are seen at 1.3588 (Nov 15 high), 1.3600 (psychological level) and 1.3796 (Feb 4 low). On the flip side, supports could be faced at 1.3427 (10-day SMA), 1.33375 (20-day SMA) and 1.3263 (Nov 9 low). 

To learn more about this topic, check our video analysis:

USDCAD from Tip TV Productions on Vimeo.