USD/CAD erases daily losses as oil falls

USD/CAD erased intraday losses over the last hours, as the loonie weakened in tandem with oil prices, while the dollar recovered from post-FOMC lows.

WTI extended losses on Thursday and fell briefly below the $41.00/bbl level. In the meantime, USD/CAD rose nearly a hundred pips from a low of 1.3100 and reached a peak of 1.3191. At time of writing, the pair is trading at 1.3182, virtually unchanged on the day while crude is at $41.05/bbl, nearly 2% down.

USD/CAD levels to watch

In terms of technical levels, next resistances are seen at 1.3253 (Jul 27 high), 1.3307 (200-day SMA) and then 1.3404 (Mar 16 high). On the flip side, supports could be found at 1.3100/1.3095 (Jul 28 low/10-day SMA), 1.3156 (Jul 27 low) and 1.3119 (Jul 25 low).