12 Dec 2014
USD/CAD hits a new 5-year High
FXStreet (Mumbai) - The loonie hits a new five year low against its US counterpart, as tumbling oil prices gives no respite to the Canadian dollar.
Currently, the USD/CAD pair trades at a new five year high of 1.1579 levels, jumping 0.49% on the day. The key reason behind the move is falling oil prices. WTI trades below USD 60/ barrel for the first time since 2009, putting serious pressure on commodity currencies across the globe. The loonie will continue trading with bearish momentum unless oil prices stabilize.
The commodity currency remains vulnerable on falling oil prices, as oil is Canada’s primary export.
USD/CAD Levels to consider
The pair has an immediate resistance at 1.1597 (April 2007 High) levels, above which gains could be extended to 1.1611 (Feb 2006 High) levels. On the flip side, support is seen at 1.1556 (5-day SMA), below which it could extend losses to 1.1502 (50-day SMA) levels.
Currently, the USD/CAD pair trades at a new five year high of 1.1579 levels, jumping 0.49% on the day. The key reason behind the move is falling oil prices. WTI trades below USD 60/ barrel for the first time since 2009, putting serious pressure on commodity currencies across the globe. The loonie will continue trading with bearish momentum unless oil prices stabilize.
The commodity currency remains vulnerable on falling oil prices, as oil is Canada’s primary export.
USD/CAD Levels to consider
The pair has an immediate resistance at 1.1597 (April 2007 High) levels, above which gains could be extended to 1.1611 (Feb 2006 High) levels. On the flip side, support is seen at 1.1556 (5-day SMA), below which it could extend losses to 1.1502 (50-day SMA) levels.