USD/CAD drops toward 1.3450

The Canadian dollar gained momentum during the last hours and reached a fresh daily high against the US dollar. USD/CAD found resistance at 1.3500 and turned to the downside. It bottomed at 1.3457, the lowest level since Wednesday, despite the modest drop in crude oil prices. 

The loonie is about to post the second daily gain in a row. It is moving reversing the short-term trend after failing last week to the lowest since May 19. 

Levels to watch 

USD/CAD failed last week to break and hold on top of 1.3550 and reversed. Now is back below 1.3475/80 that was an important support. A consolidation below could open the doors for an extension of the slide toward 1.3420/25. That area is a key dynamic support, that is an uptrend connecting February and April lows. 

On the upside, the immediate resistance is seen at 1.3500 and above here the next resistance could be located at 1.3545 (Jun 2 high) followed by 1.3635 (May 5 & 8 low).