USD/CAD rises above1.2500 as crude oil tumbles
- Loonie under pressure as WTI drops 4%.
- USD/CAD rises for the second day in a row.
The USD/CAD jumped to 1.2502 on American hours, even amid a weaker US dollar across the board. The sharp decline in crude oil prices weighed on the loonie. The WTI barrel is falling by 4%.
After the release of the US ISM manufacturing index, USD/CAD bottomed at 1.2452 and then bounced sharply to the 1.2500 area. As of writing, it is hovering around 1.2495, with a bullish tone intact.
The DXY is down just 0.07%, around 92.00, as US yields tumble. The 10-year dropped to 1.17%, the lowest since July 20, and on a daily basis, it could post the lowest close since February. In Wall Street, stocks are modestly higher.
Key resistance at 1.2530
If the USD/CAD finds more buyers, the next key level is the 1.2530 are. A break above should clear the way for an approximation to 1.2600 and would alleviate further the bearish pressure. On the flip side, in the very short-term, 1.2485 is the immediate support, followed by 1.2450 and last week low at 1.2420.
Technical levels