USD/CAD erases daily gains after oil inventories data

USD/CAD pulled back from a 9-day high scored earlier on the day as the loonie and oil pared losses following the EIA crude oil inventories report.

USD/CAD retreated from a peak of 1.3143 reached earlier on the day as oil prices slumped, dragging CAD with them, amid news the OPEC didn’t reach an agreement on supply at their meeting in Vienna. However, oil and CAD recovered in tandem following EIA report showing US crude stock dropped by 1366K barrels last week, despite expectations of a 2500K drawdown.

USD/CAD erased completely daily gains and fell back to the 1.3080 area, where it was trading flat at time of writing.

USD/CAD levels to watch

In terms of technical levels, next supports could be found at 1.3016 (May 31 low), 1.2994 (21-day SMA) and then 1.2910 (50-day SMA/May 26 low). On the other hand, resistances could be faced at 1.3143 (Jun 2 high), 1.3187 (May 24 high) and 1.3218 (Apr 5 high).