USD/CAD hits nine-day lows near 1.3950, as USD falls, WTI rebounds
- USD/CAD erodes over 100-pips as risk recovery knocks-off USD.
- Oil-price rebound helps the CAD to recover ground.
- All eyes remain on US Consumer Confidence and API Crude Stocks data.
USD/CAD is down over a big figure in the European trades, having taken a sharp U-turn from the daily highs at 1.4073 to mid-1.3900s, where it now wavers.
The major faces a double-whammy, in the wake of the sharp fall in the US dollar across the board collaborating with the solid comeback staged by the US oil prices over the last hour.
The dollar loses ground broadly, as markets cheer strong earnings reports from the companies in the old continent while lockdown easing plans likely from Spain and Germany also buoy the risk tone.
Meanwhile, WTI recovered nearly 17% from daily lows of $10.13, as it currently trades around $12 mark. The oil-price rebound helped resource-linked Loonie to recover ground swiftly. Oil is Canada’s top export product.
Attention now turns towards the US docket, with the Consumer Confidence gauge and American Petroleum Institute’s (API) weekly Crude Stocks data closely eyed for fresh directives on the CAD pair.
From a technical perspective, amid intense selling pressure, the 50-DMA support at 1.3907 is likely at risk. The recovery seems possible only if the bulls manage to reclaim the 1.4055 area, where the 5, 20-DMA and the daily pivot point intersect.
USD/CAD additional technical levels