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USD/CAD drops below 1.3 as oil rises

FXStreet (Mumbai) - The bid tone on the CAD continued to gain traction in the European session amid rising oil prices, thereby pushing the USD/CAD pair to a fresh one month low of 1.2996 levels.

Oil sits firmly in the driver’s seat

Oil prices at both the sides of the Atlantic rose another 1% today. The upward revision of the global oil demand forecast by the EIA on Tuesday overshadowed a weak global growth forecast by the IMF. Consequently, the USD/CAD fell for the sixth consecutive session in Europe today.

Ahead in the day, the oil prices are likely to remain at the centerstage. Canadian building permits data for August may add/subtract few pips here and there.

USD/CAD Technical Levels

At 1.12996, the immediate support is seen at 1.2952 (Aug 12 low), under which the spot could extend losses to 1.2873 (100-DMA). On the higher side, resistance is seen at 1.3069 (hourly 50-MA) and 1.3141 (hourly 100-MA).

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