USD/CAD pushes lower as crude oil soars after EIA report

After rising on USD strength on Monday and Tuesday, the USD/CAD came under a heavy selling pressure on Tuesday amid a weaker greenback and rising crude oil prices. Following the latest weekly crude oil stock report of EIA, the pair lost nearly 50 pips and fell to a fresh session low at 1.3650. As of writing, the pair was trading at 1.3656, down 0.46% on the day.

On Wednesday the EIA reported that the U.S. commercial crude oil inventories decreased by 5.2 million barrels for the week ending May 5. The barrel of West Texas Intermediate quickly jumped above $47 and renews its five-day high at $47.70 before easing back a little. At the moment, the barrel of WTI is trading at $47.25, gaining 1.35$, or 3%, on Wednesday. 

• WTI clinches daily highs above $47.00 post-EIA

In addition to the loonie strength, the greenback on Wednesday remains near 99.50 area, consolidating the solid gains it recorded earlier in the week. The macro data from the United States looked strong but couldn't help the USD gather a bullish momentum. Boston Fed President Rosengren's remarks will be looked upon for fresh impetus at the top of the hour. 

Technical outlook

With a clean break below 1.3645 (May 8 low) the pair could aim for 1.3600 (psychological level/Dec. 28 high) and 1.3455 (50-DMA). On the upside, resistances could be encountered at 1.3700 (psychological level), 1.3735 (2016, Feb. 25 high) and 1.38 (psychological level).