USD/CAD breaks last week lows, rebounds slightly rising back above 1.2700

• CAD among top performers on the back of oil prices and Bank of Canada Outlook Survey. 
• USD/CAD heads for lowest close in five weeks. 

The USD/CAD is falling sharply on Monday, headed toward the lowest close since February 26.  The loonie is among the top performers supported after the Bank of Canada Outlook Survey and amid a rally in crude oil prices. 

Earlier today the pair moved to the upside and traded on top of 1.2800. It peaked at 1.2818 and turned to the downside. It accelerated the move lower after breaking below 1.2730 (Apr 6 low). It bottomed at 1.2685 and then rebounded modestly. During the last hours it has been steady, moving between 1.2715 and 1.2695, consolidating losses. 

The appreciation of the loonie took place after the Bank of Canada said companies remain upbeat about future sales, business investment and hiring despite NAFTA negotiations. The Outlook Survey from the central bank showed sentiment remain positive but expected some moderation ahead. Next week, April 18, will be the Bank of Canada meeting. Another factor supporting the rally of the loonie on Monday was the gain in crude oil prices. The WTI was up more than 2%  above $63.00/oz. 

Technical levels

USD/CAD broke under last week lows and even traded below 1.2700. It found support at 1.2690 (100-day moving average). A consolidation below could clear the way for the next strong support seen at 1.2625/30 (intermediate support at 1.2660). On the upside, resistance could be located at 1.2780 (Aug 17 high), 1.2815 (Mar 27 high/Apr 9 low) and 1.2860 (Mar 29 & 30 low).