USD/CAD retraces from 5-year highs

FXStreet (Mumbai) - The Canadian dollar advanced against the US counterpart, reversing from multi-year lows reached in the previous session, as oil price rebound lent support to the loonie.

Currently, the USD/CAD pair traded at 1.2094 levels, down -0.15% on the day, having opened at day’s high of 1.2114 levels. The USD/CAD edged lower largely due broad based US dollar sell-off. The dollar index, measuring the relative strength of the greenback versus the six major currencies, trades close to the day’s low of 92.97 levels, down -0.32% on the day. Moreover, recovery seen in oil prices also supports the gains in the Canadian dollar.

Meanwhile, traders may now shift their focus towards Bank of Canada (BOC) monetary policy meeting followed by a press conference for major impacts on the commodity currency.

USD/CAD Technical Levels

To the upside, the next resistance is located at 1.2117 levels and above which it could extend gains 1.2150 levels. To the downside immediate support might be located at 1.2060 levels, below that at 1.20 levels.

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