USD/CAD dips below 1.35 as oil trims losses

The technical correction in the US dollar and the recovery in the oil prices from the session lows saw the USD/CAD pair surrender gains to trade below 1.35 handle.

Focus on oil

Oil prices were down more than 1% earlier today, which had pushed the USD/CAD to a session high of 1.3538. Moreover, Saudi Arabia said over the weekend that an OPEC deal may not be required. This reduced the probability of an OPEC deal later this week.

However, the oil benchmarks trimmed losses. The WTI was last seen trading 0.75% lower on the day around $45.69/barrel. On similar lines, Brent trimmed losses as well.

Consequently, the USD/CAD pair surrendered gains to print a session low of 1.3491. Moreover, a broad based technical correction in the US dollar also helped the CAD recover the losses.

USD/CAD Technical Levels

In terms of technical patterns, the daily chart shows a rising channel formation. A daily close above 1.3538 (session high + channel resistance) would open doors for a more sustained rise to 1.3589 (Nov 14 high) and 1.36 levels. On the lower side, a breach of Friday’s low of 1.3454 could yield a sell-off to 1.34 (zero figure) under which a major support is seen at 1.3378 (Nov 22 low).