Technical Analysis

USD/CAD retreats on higher oil prices as OPEC+ signals more cuts over the weekend

USD/CAD lingers near session lows close to 1.3430

ForexLive

The ping pong price action between 1.3400 and 1.3500 for USD/CAD continues as we begin the new week after price fell slightly from 1.3500 towards the end of last week before retreating further this morning. The drop mainly comes from a more buoyed loonie after OPEC+ talked up an extension to its output cut deal ahead of the final decision next month.

As such, oil is up by more than 1% on the day to $63.47 with Brent now up by 1.2% to $73.10. And that is helping to underpin the Canadian dollar as we start the session.

USD/CAD now holds close towards minor support around 1.3427 but notable near-term support is seen closer around 1.3400-07 alongside some light bids at the figure level. Over the past two weeks, it has been a case of bouncing between 1.3400 and 1.3500 for USD/CAD as traders continue to do battle around the key hourly moving averages.

For now, sellers are establishing a more near-term bias but unless price manages a meaningful break below the 1.3400 handle (firm close below the figure level), the ping pong price action is still expected to continue.

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