USD/CAD touches a low of 1.3238 on the day

Oil is trading at the highs for the day now with WTI crude up 1.43% to $70.45 while Brent is up 1.16% to $73.42. That has put a bid on the loonie which is advancing against the dollar to lows of 1.3238 currently.

USD/CAD also posted a double-top pattern earlier in the day - a technical indicator for a rejection and so far that is playing out well. Support is seen at current levels and bids seen around 1.3220 with further lined up at 1.3200.

Further support is then seen in the 100-hour MA (red line) @ 1.3195 with the 200-hour MA (blue line) sitting next in line @ 1.3178.

The dollar is a little weaker across the board while the rebound in commodities and oil is helping the loonie to advance further on the day. But look out for some resistance in the gains seen by oil from here onwards:

Brent is running into key technical levels currently so that may help to give a bit of a breather in the pair. However, there is key data risk to come later in the day with Canadian inflation and retail sales figures to come in US trading.