USD/CAD climbs to highs of recent 14 months as crude oil increases losses

The pair USD/CAD continued bouncing at 1.3535 and recently reached 1.3669, the highest level since February of 2016. The canadian dollar is among the weaker currencies of the american session affected by a fall in the price of crude oil.

The barrel WTI extended losses. Lost 2%, operating around 48.60. Today, the pair fell sharply from the peak of 14 months prior (1.3645) at 1.3530 for a few minutes after the american President Donald Trump talked about the renegotiation of NAFTA.

After a period of consolidation, the USD/CAD pair began to climb. From the minimum, won more than a hundred pips, not only erasing the losses, but also breaking to new highs. Currently, the pair is around 1.3640, as it moves from the maximum daily.

The mixed data not blunted the rally american. Initial claims for unemployment rose 257K (vs. 241K expected), purchases of durable goods in march rose 0.7% (vs. +1.2%) and pending sales of homes fell by 0.8% (vs. -1.0%).

Technical levels

The pair continues to maintain a strong bullish momentum after established above 1.3600. On the daily chart, the RSI is at extreme levels but still showing no signs of wanting to be reversed, which would point to some correction. To the upside, the levels of resistance could be seen at 1.3680 and then 1.3700 (psychological).

In the opposite direction, support could now be seen at 1.3625 (April 25), 1.3585 and 1.3525 (daily minimum).

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