USD/CAD sits above 1-hour 100-MA

Having rebounded from a sub-1.32 area fourth straight session on Tuesday, the USD/CAD pair extended gains in the Asian session today to trade above the 1-hour 200-MA level of 1.3242 levels.

Rejected at 1.3254

The spot clocked a high of 1.3252 before falling to 1-hr 200-MA level of 1.3242. The sell-off from the December 28 high of 1.3598 ran out of steam at a low of 1.3177 (Jan 6 low). Since then the bears have had a tough time keeping the pair under 1.32.

Oil price sell-off in the last two trading days also ensured the USD/CAD pair stays above 1.32. However, the uptick in oil prices in the Asian session capped gains in the USD/CAD pair at 1.3254 levels.

USD/CAD Technical Levels

A break above 1.3259 (100-DMA) would open the doors to 1.3278 (61.8% of Dec 14 low - Dec 28 high). A violation there could yield a rally to 1.3339 (50% of Dec 14 low - Dec 28 high). On the lower side, a breach of 1.3231 (5-DMA) would shift risk in favor of a drop to 1.32 (zero figure) and 1.3177 (Jan 6 low).