USD/CAD breaks below 1.2900 as crude oil consolidates gains

The loonie (CAD) is among the best performers in the currency market on Monday and against the US dollar extended gains during the American session.

USD/CAD down, WTI sharply higher

The pair opened the week trading higher and peaked on Asian hours at 1.2961, the highest level in five days but then turned to the downside amid a rally in crude oil prices. After Wall Street opening bell it broke below 1.2900 and bottomed at 1.2874, level located above Friday’s lows.

It was trading at 1.2890, down 45 pips for the day so far while crude oil prices were rising more than 3%. The WTI barrel peaked at $47.70, the strongest level since November 2015. It pulled back afterwards but manged to remain above $47.25.

USD/CAD levels to watch

To the upside, resistance level might now be seen at 1.2900 (psychological / European session low), 1.2925 (20-hour moving average) and 1.2960/65 (daily high). On the opposite direction, support could be located at 1.2870/75 (daily low), 1.2830 (May 11 & 13 low) and 1.2770 (May 12 low).