USD/CAD: a beak of 1.31 on the cards

USD/CAD has rallied, but fallen shy of the 1.31 handle thus far with highs of 1.3090.

The greenback has been on the warpath in the US session with the DXY breaking onto the 96 handle while the Loonie has been taken lower with a drop in the oil price, dispite the Iraq news with officials supporting an oil outpitfreeze, adding further bids to the chain in USD/CAD. "Trend strength oscillators are aligned positively, which should support a modest rise in the USD at least near term," explained analysts at Scotiabank.

USD/CAD levels

"We think the USD could rise to the low 1.31 area shortly and continue to view 1.3250/75 as major resistance for the USD in the near-to-medium term," explained the analysts who suggest that technical factors favour USD strength at present. Current price is 1.3095, with resistance ahead at 1.3105 (Daily High), 1.3105 (Daily Classic R3), 1.3132 (Weekly Classic R2), 1.3171 (Monthly High) and 1.3250 (Weekly Classic R3). Next support to the downside can be found at 1.3077 (Daily Classic R2), 1.3068 (Weekly Classic R1), 1.3050 (Hourly 20 EMA), 1.3049 (Yesterday's High) and 1.3044 (Daily Classic R1).