USD/CAD at 7-week lows

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USD/CAD at 7-week lows

FITITOL--> FXstreet.com (Córdoba) - The Loonie strengthened on Tuesday and dragged USD/CAD to a 7-week low, underpinned by better risk appetite and a sharp rise in oil prices. Crude oil gained over 4% amid speculation sanctions against Iran will curb supply.

USD/CAD fell to its lowest since May 17 at 1.0120, but failed to break decisively below that level where the 50% retracement of the 0.9798/1.0444 rally and the 200-day SMA converge. At time of writing, USD/CAD is quoting at the 1.0125 area, recording a 0.4% loss on the day.

In terms of technical levels, below 1.0120 next supports are seen at 1.0100, and the 1.0045/50 area (61.8% retracement and 100-hour SMA). On the upside, resistances could be found at 1.0150, 1.0170 and 1.0200.