USD/CAD falls to test 1.2900

USD/CAD extended the decline and tested the 1.2900 area, although the loonie lacked strength to clear the psychological support.

The Canadian dollar obtained support from higher oil prices on Monday, with USD/CAD bottoming out at a 1-month low of 1.2900 as WTI hovers near 3-week highs at the $45.70/bbl zone amid speculation main oil producers could cooperate to freeze output and stabilize the market.

USD/CAD levels to watch

At time of writing, USD/CAD is trading at 1.2920, recording a 0.31% loss on Monday. If USD/CAD breaks below 1.2900, next supports are seen at 1.2860 (Jul 15 low) and 1.2830 (Jul 4 low). On the other hand, immediate resistances line up at 1.2979 (50-day SMA), 1.3055 (10-day SMA) and 1.3079 (Aug 11 high).