USD/CAD accelerates to the downside and eyes 1.3300 as crude oil soars
- Weaker US dollar and higher crude oil prices sent USD/CAD lower.
- Pair resumes slide after four days of gains.
The USD/CAD pair is losing almost 70 pips, erasing almost all of the gains of the previous four trading days. It printed a fresh 4-day low at 1.3313, and it is holding near the bottom, with the bearish tone intact.
Higher crude oil, lower USD
The pair is retreating after hitting on Friday the highest level in a week following the release of the US and the Canadian employment report. Afterward, the USD/CAD started to correct lower and today the decline accelerated, changing the short-term tone.
The move lower took place amid a decline of the US dollar in the market. The DXY is down 0.30%, trading near the 97.00 area. Regarding the loonie, it is the top performer among majors on Monday boosted by crude oil prices. The WTI barrel is up by 1.75%, above $64.00, at the strongest since November of last year.
Eyes on April lows
The decline and the bearish tone around the USD/CAD, turns attention back into April’s low located at 1.3295. The area around 1.3295 and 1.3300 is a relevant short-term support, and a break lower should clear the way to more losses with an immediate target at 1.3280 and below to the next support located at 1.3250/55 (Mar 19 & 20 low).
To the upside, the US dollar needs to rise back above 1.3365 to recover momentum. Before the key 1.3400 area, the pair could face resistance at 1.3385.