USD/CAD hits 1-week lows and rebounds

USD/CAD extended the slide to 1.3385, hitting the lowest level since November 9 and then rebounded to the upside. The loonie gained support from a rally in crude oil prices. The barrel of West Texas reached $47.50 and it was up 3.50%. 

Currently, USD/CAD is trading at 1.3440, after rising more than 40 pips from the lows, amid a recovery of the US dollar across the board, that trimmed losses during the last hours. Equity prices in Wall Street rose back toward daily highs. The Dow Jones was up 0.28% and the S&P 500, that hit new record highs, was rising 0.65%. 

USD/CAD levels to watch 

The pair continues to move with a bullish bias on a wider perspective, moving in an upward channel. Last week, the pair finished unchanged (Doji candle) giving some signals of exhaustion that could signal a consolidation or a correction ahead.  

In the short-term, immediate resistance could be seen at 1.3450 (American session high), 1.3490 (Nov 18 low) and 1.3565 (Nov 18 high). On the opposite direction, support might be seen at 1.3385 (daily low), 1.3350 (Nov 1 low) and 1.3300 (psychological). 

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

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