Oil rebound sends USD/CAD back down to a test of yesterday's lows

Technical Analysis

Author: Adam Button | usdcad

Crude rallies to $49.40 from $48.05

The volatility in oil is the main driver of the Canadian dollar today. Oil took a hard hit midway through European trading but has slowly recovered and is at the best levels of the day. The $1.35 bounce from the lows has led to a 70-pip reversal in USD/CAD.

Now USD/CAD is testing yesterday's low of 1.3572. The pair tried these levels a handful of times yesterday and on Tuesday but they consistently held.

Watch for stops if 1.3572 breaks.