USD/CAD drops to 2-month lows near 1.3200

The Canadian dollar is extending its upside momentum vs. its American peer on Thursday, now dragging USD/CAD to test fresh 2-month lows near the 1.3200 handle.

USD/CAD lower on oil gains

Spot is accelerating its weekly decline to the area of the key support at 1.3200 the figure, although it has managed to pick up some pace soon afterwards. The weekly bias remains well into the bearish camp nonetheless, reaching fresh 2-month lows in response to the recent rally in crude oil prices and retreating for the second week in a row.

In fact, the West Texas Intermediate is up smalls so far today, trading just below the critical $50.00 mark per barrel after reaching 2016 tops beyond the $52.00 limestone on Monday.

On the data front, market participants seem to have already digested the overall neutral stance from the BoC at yesterday’s meeting, while Housing Starts and Building Permits are due later in Canada. South of the border, Initial Claims are only expected.

USD/CAD significant levels

As of writing the pair is losing 0.09% at 1.3224 and a breach of 1.3207 (low Dec.8) would open the door to 1.3194 (100-day sma) and finally 1.3065 (200-day sma). On the other hand, the next resistance lines up at 1.3311 (38.2% Fibo of the 2016 drop) followed by 1.3357 (high Dec.5) and then 1.3414 (20-day sma).