USD/CAD hovers near 8-week lows

The Canadian dollar started the week on a strong note on Monday, dragging USD/CAD to its lowest level in nearly 2-months as higher oil prices boosted the loonie.

Oil prices rose sharply and lifted commodity currencies, after news that non-OPEC countries, led by Russia, are joining the cartel in cutting output to tackle global oversupply. This is the first deal between OPEC and non-OPEC reached to cut production since 2001.

USD/CAD bottomed out at 1.3108, level last seen Oct 19, although it managed to recover ground over the last hours. The pair was last trading at 1.3140, still down 0.29% on the day.

USD/CAD levels to watch

In terms of technical levels, next supports could be found at 1.3107 (Dec 12 low), 1.3074 (200-day SMA) and 1.3054 (Oct 18 low). On the other hand, resistances are seen at 1.3192 (100-day SMA), 1.3211 (Dec 9 high) and 1.3249 (Dec 8 high).

To learn more about this topic, check our video analysis:

usd cad from Tip TV Productions on Vimeo.