USD/CAD breaks below 1.3000 as oil rallies

USD/CAD broke decisively below the 1.3000/1.2990 support area and extended losses to fresh 3-week lows, as the Canadian dollar tracked oil prices gains.

USD/CAD has lost more than a hundred pips from daily highs and bottomed out at 1.2962 during the New York trade, as WTI is staging an impressive comeback up by more than 4% on the day. 

At time of writing, USD/CAD is trading at 1.2975, 0.67% below is opening price, and on track to post its fourth daily loss in a row.

USD/CAD levels to watch

As for technical levels, next supports are seen at 1.2944 (100-day SMA), 1.2900 (psychological level) and 1.2860 (Jul 15 low). On the other hand, immediate resistances line up at 1.3080 (10-day SMA), 1.3122 (Aug 10 high), 1.3199/1.3200 (Aug 5 high/psychological level).