USD/CAD drops to a low of 1.3160 on the day
The fall is closing in on 1% now as the pair trades at its lowest level since 20 November. It’s a case of a double whammy for USD/CAD as risk is helping to boost sentiment in the loonie while weakening the dollar, but also oil is benefiting from the resurgence in risk and that’s helping to add a second layer of bids in the loonie.
Price now looks towards the 61.8 retracement level @ 1.3132 as the next layer of support before bids at 1.3100 come about. That will then be followed by the key levels from the 100-day MA (red line) @ 1.3079 and then the 200-day MA (blue line) @ 1.3007.