USD/CAD moving towards a test of the 1.3000 handle
The Canadian dollar is the worst performing major currency on the day so far, with oil prices being marked down as we start the week - which is dragging down the currency.
Brent is now down testing the $75.00 handle, having fallen to a low of $74.50 earlier, with WTI crude also down by 2.5% to $66.20, having fallen to a low of $65.80 earlier in the day.
Although the dollar is pressured - dollar index is down 0.4% - the loonie isn't doing much better with oil prices weighing on the currency, and not to forget the still added uncertainty surrounding a NAFTA agreement. The latter has been a constant thorn in the loonie throughout the year, and continues to be one of the key factors why the currency hasn't done all too well despite the rise in oil prices towards $80 earlier last week.
The charts will show a figurative double top pattern near 1.3000 for USD/CAD with buyers also testing the figure level in early May. A break above the figure level would bode well towards testing the year's high @ 1.3125 posted in March. But the key battleground now between buyers and sellers is the figure level @ 1.3000.
If anything, look for the daily close today to provide a signal. A firm close above is suggestive of buyers extending control/momentum towards the upside.
------
