USD/CAD quickly approaches 1.3000 as loonie tracks oil down

USD/CAD turned sharply higher and reversed completely intraday losses as the loonie slumped along with oil prices following the release of EIA crude oil inventory data.

US inventories fell by 2223K barrels last week, below the 2500K draw expected. However, investors seemed disappointing as yesterday’s API reported a 6700K draw in US stockpiles.

USD/CAD rallied over 100 pips over the last hours, accelerating toward a daily high of 1.2990 after the EIA report. At time of writing, the pair is trading at 1.2985, recording a 0.19% gain on the day, having bounced from lows in the 1.2875 zone. 

USD/CAD technical levels

In terms of technical levels, next resistances could be found at 1.3014 (100-day SMA), 1.3055 (Jul 6 high) and 1.3119 (Jun 27 high). On the other hand, supports are seen at 1.2876 (Jul 7 low), 1.2830 (Jul 4 low) and 1.2800 (psychological level).