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USD/CAD under pressure amid resurgent oil prices

  • CAD appreciates despite the sour tone of US equities.
  • Oil prices reached fresh 2019 highs after President Trump said the US wouldn't renew Iranian oil waivers.

The Loonie is the most active in dull holiday trading, with the USD/CAD pair trading at around 1.3340. The Canadian dollar strengthened on the back of resurgent oil prices, which got boosted by news that US President Trump has decided not to renew Iranian oil waivers, aiming to bring Iran's oil exports to zero and denying the regime its principal source of revenue. According to Washington sources, countries importing oil from Iran will be subject to sanctions starting May 2. The barrel of West Texas Intermediate crude hit $65.70, a level last seen by the ends of October 2018.

The USD/CAD has been unable to find a clear direction this month, confined to a range limited by 1.3273 on the downside and 1.3402 to the upside, now trading midway such a range at around 1.3340. In the daily chart, the 100 DMA provides Immediate support at 1.3330, while the 200 DMA  maintains its upward slope at around 1.3090. However, and in the same chart, technical indicators have been seesawing around their midlines without a certain strength, reflecting the ongoing range.

 

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