USD/CAD is losing altitude in Asia on oil rally

The early high for USD/CAD is wearing off and the pair is fast losing height on oil price rally.

The pair clocked a high of 1.3452 earlier today before deflating to 1.3418 levels.

Bearish 5-DMA - 10-DMA crossover

The daily chart now shows the bearish 5-MA and 10-MA crossover. However, the pair still sits well above the 50-DMA level of 1.3398. Moreover, the American dollar found takers below the 50-DMA level on Monday, thus the pair managed to stage a rally to 1.3450 levels.

But the rally fizzled out in Asian session today as the WTI oil rallied 0.60% or 33 cents to $54.05/barrel.

The spot remains at the mercy of the oil price action ahead of the US ISM manufacturing release due later today.

AUD/USD Technical Levels

A break below 1.3398 (50-DMA) would open the door to 1.3383 (previous day’s low). Acceptance below the same, preferably on the daily chart, could yield a sell-off to 1.33 handle. On the other side, breach of hurdle at 1.3452 (session high) could see the pair test supply around the 10-DMA level of 1.3486 and 1.35 (zero figure) levels.