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30 Sep 2014
USD/CAD jumps above 1.1200 amid oil's collapse
FXStreet (San Francisco) - The USD/CAD climbed around 50 pips from 1.1165 to break above 1.1200 and to reach fresh highest level since March 24 at 1.1220. Canadian Dollar is trading under pressure amid the $3.80 collapse in the oil prices to $91.00/barrel.
According to Jamie Coleman, the free-falling oil is helping to push USD/CAD through 1.12. "Crude is taking a beating today with WTI down over $3 to 91.30 and Brent down $2.75 to 94.80." Coleman points out that there are not "good news for Canada, whose oil is expensive to extract compared to elsewhere."
Currently, USD/CAD is trading at 1.1218, up 0.48% on the day, having posted a daily high at 1.1220 and low at 1.1132. USD/CAD spot is in overbought territory according to the hourly FXStreet OB/OS Index, while the FXStreet Trend Index is slightly bullish.
USD/CAD levels
If the pair consolidates gains above 1.1200, it will face next resistances at 1.1225 and 1.1275. On the downside, supports are at 1.1200, 1.1175 and 1.1135.
According to Jamie Coleman, the free-falling oil is helping to push USD/CAD through 1.12. "Crude is taking a beating today with WTI down over $3 to 91.30 and Brent down $2.75 to 94.80." Coleman points out that there are not "good news for Canada, whose oil is expensive to extract compared to elsewhere."
Currently, USD/CAD is trading at 1.1218, up 0.48% on the day, having posted a daily high at 1.1220 and low at 1.1132. USD/CAD spot is in overbought territory according to the hourly FXStreet OB/OS Index, while the FXStreet Trend Index is slightly bullish.
USD/CAD levels
If the pair consolidates gains above 1.1200, it will face next resistances at 1.1225 and 1.1275. On the downside, supports are at 1.1200, 1.1175 and 1.1135.