USD/CAD - Bears attack 200-DMA as oil rallies

The USD / CAD pair is looking to chew through 200-DMA support of 1.3143 this Thursday morning in Asia on the back of the rally in oil prices.

Rejected at 38.2% Fib retracement

The pair was rejected at 1.3209 (38.2% of Dec 28 high - Jan 31 low) yesterday after the US API reported a surprise drawdown in the oil inventories. Furthermore, cautious Fed minutes also took the wind out of the dollar bulls.

The pair continued to lose height in early Asia, falling from 1.3170 to 200-DMA level of 1.3143. It is the 0.8% rally in oil prices that is helping the CAD extend overnight gains.

USD/CAD Technical Levels

The spot was last seen trading around 1.3148. Acceptance below 200-DMA of 1.3413 would signal the rally from 1.30 (Feb 16 low) has ended. The spot could test 1.3117 (23.6% fib), under which a major support is seen at 1.30 (Feb 16 low). On the other hand, a break above 1.3170 (session high) would expose 1.3209 (38.2% fib) and 1.3236 (Dec 5 low).