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USDCAD Holds Shift Off Key Support Levels As WTI Slides

CANADA
  • USDCAD continues to trade close to earlier session highs of 1.3384 despite a lift in the S&P E-mini back closer to session highs, with a further slide in WTI (-3.9%) weighing on the loonie amidst USD strength more broadly (plus possibly the outperformance of GoCs on the day).
  • The bounce off lows of 1.3313/1.3315 over the past two days has helped reinforce the key short-term support at 1.3302 (Apr 14 low) that needs to be cleared to extend bearish conditions further.
  • Recent declines for the pair though mean that resistance remains some way off with the 20-day EMA at 1.3466.
  • Tomorrow sees largest option expiry at 1.3330 ($630m) for the NY cut but with US CPI coming first.

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