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USD/CAD hit two-week high, oil drops

FXStreet (Mumbai) - The broad based USD rally in Europe coupled with a moderate drop in oil prices pushed the USD/CAD pair to a two-week high of 1.3422 in the European session.

USD bid in Europe

The USD demand spiked in Europe as traders digest the likelihood of the Fed liftoff next week following the Friday’s upbeat non-farm payrolls report. Meanwhile, the OPEC lifted its output ceiling, which pushed oil prices moderately lower.

Ahead in the day, the broad based USD demand and the movement in the oil prices could continue to influence the USD/CAD pair.

USD/CAD Technical Levels

The immediate resistance is seen at 1.3436 (Nov 23 high), above which the gains could be extended to 1.3457 (2015 high). On the other side, a break below 1.34 would expose the hourly 100-MA at 1.3361, under which the pair could drop to the hourly 200-MA at 1.3346.

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