USD/CAD fades a spike to 1.3100, despite lower Oil

The USD/CAD pair ended a three-day rally and fell into the red zone this Wednesday, with the Loonie benefiting, despite ongoing weakness seen in the oil prices.

USD/CAD finds support at 5-DMA

Currently, the USD/CAD pair trades -0.08% lower at 1.3081, quickly reversing a spike to daily highs reached at 1.3095. The Canadian dollar appears to regain some footing against its American rival, following three straight sessions of losses, as markets look to take profit on their long positions ahead of the OPEC meeting due tomorrow and the upcoming US crude supply reports, which are likely to have significant impact on the resource-linked Loonie.

Moreover, the losses in the CAD pair can be also attributed to the renewed sell-off seen in the US dollar across the board, as markets now look forward to the US manufacturing PMI reports for further incentive.

USD/CAD Technical Levels

To the upside, the next resistances are seen near 1.3100 (round number) and 1.3135/55 (May 25 & 19 High). To the downside, immediate support might be located at 1.3053 (5-DMA) and below that at 1.3000 (round number/ psychological levels).