USD/CAD breaks above 1.3100

USD/CAD accelerated to the upside and climbed above 1.3100, to the highest in five days on the back of a stronger US dollar a decline in crude oil prices. 

WTI tumbles to 3-day lows near $53.00

The pair remained steady during the Asian session, near 1.3000 and then started to rise. The upside accelerated during the last hours and it broke above 1.3100. It peaked at 1.3135 and then pulled back. It is trading at 1.3105, 75 pips above Friday’s closing price. 

Levels to watch 

Today’s rally so far was capped by the 1.3130/35 area, that is where the 20-day moving average stands. A break higher could add further strength to the US dollar from a technical perspective. Above, the next target might lie at 1.3190 and 1.3250. 

To the downside, the immediate support is now seen at 1.3100, followed by 1.3075 (Feb 3 high) and 1.3005 (daily low).