The Canadian dollar tumbled across the board amid a sharp decline in crude oil prices. The WTI barrel is falling more than 4%.
USD/CAD traded at weekly lows a few hours ago at 1.3424. Then it bounced modestly to the upside and after the EIA report jumped. The pair climbed above 1.3500 and continued to rise. Recently it peaked at 1.3518 hitting the highest level since last Friday.
The pair is now moving closer to last week highs that lie at 1.3545 and is up more than 70 pips for the day. It is having one of the best performances of the last 30 days.
To the upside, resistance levels might be located at 1.3545 (last week high), 1.3570 (May 17 high) and 1.3610 (May 19 high). Immediate support might be seen at 1.3485 (Jun 6 high) and 1.3460. The key support is the area around today’s low at 1.3420, that is where an uptrend line from February stands. A close below would signal weakness ahead for the US dollar.