- USD / CAD tests weekly highs above 1.2350.
- An improvement in the dollar together with a drop in crude oil boosted the pair.
USD / CAD is up 70 pips from the low of the day and just hit highs since Friday at 1.2370. Prior to this, it fell to 1.2301, in hours of the European session, being the lowest level in a week.
The pair managed to defend the 1.2300 mark from where it started to bounce. It first recovered 1.2350 and is now testing levels above Monday’s high. The pair rises for the second day in a row, although on both days, it also marked weekly lows.
The advance of the USD / CAD began with a strengthening of the dollar in the market, before a fall in the bags and a reputation after the weakness after employment report. In turn, the price of oil changed trend after reaching highs since November 2014. A barrel of WTI approached $ 77.00 and is now trading below $ 76.00. The lack of agreement between the Organization of the Petroleum Exporting Countries and its allies had driven up prices. The rally showed signs of exhaustion, which together with possible profit taking, favored the current pullback.
USD / CAD is ahead of 1.2380, the hundred-day average. A sustained move further, would clear the way for 1.2400 and beyond. On the downside, now 1.2345 / 50 is the first support to watch out for.
On Tuesday, activity will return to normal in the US after the holiday. June service sector reports will be released with PMI and ISM. Wednesday will be the minutes of the last meeting of the Federal Reserve. What happens to the price of oil will also be key.
Technical levels
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