USD/CAD extending 3-day winning streak

USD/CAD stands supported from the fall in oil prices, registering 4th consecutive day of gain. The pair trades higher by 0.18%, above the previous close at 1.3044, and near its daily high at 1.3078.

Eyes oil data and Brainard speech

The pair remains at the mercy of oil prices, which are seen sliding further on falling hopes of production freeze agreement at Algeria meeting. US rig count data released on Friday showed the problem of excess supply is here to stay for a long time.

Meanwhile, the USD side of the story may strengthen further if Fed’s Brainard (a well know dove) comes out in favor of a rate hike.

USD/CAD Technical Levels

The pair looks ripe to test flag formation resistance at around 1.3117, above which 1.32 (psychological resistance) could be put to test. Next major hurdle is seen at the 200 DMA level of 1.3266.

On the downside, 1.3044 (Friday’s close) serves as the first support, followed by the 50 DMA at 1.3014, and the 23.6% fib retracement at 1.2986.