USD/CAD does not buy rally in oil

Oil prices at both the sides of the Atlantic rallied at least 3% on Monday; however, it appears the Canadian dollar does not trust the rally.

The USD/CAD pair declined on Monday tracking the rise in oil prices, but the gains in the CAD were miniscule. And more importantly, the currency pair is up 0.19% at 1.3181 levels in Asian session as the oil prices are down almost 1%.

The underperformance of the Canadian dollar on Monday amid sharp gains in oil and in the absence of fresh US data releases suggests the currency traders aren’t buying the rally in oil prices seen in lat few sessions.

USD/CAD Technical Levels

A break above 1.32 (Friday’s high) would open doors for 1.3254 (July 17 high). A violation there could yield 1.3306 (200-DMA). On the other hand, a breakdown of support at 1.3152 (daily low) would expose 1.3116 (5-DMA), under which the losses could target 1.3063 (Aug 3 low).