USD/CAD drops to 1.2765, 8-week low

USD/CAD extended the decline during the American session, on the back of a weak US dollar and a recovery in crude oil prices. The WTI barrel is up 2.50% trading above $48.00.

A stronger CAD

The Loonie is among the top performers of the day. USD/CAD started the day hovering around 1.2840 and recently bottomed at 1.2764, the lowest level since June 23 when the UK referendum took place.

Currently, it trades at 1.2775, down almost 200 pips from the level it had at the beginning of the week. It is falling for the fourth day in a row.

Technical levels

To the downside, support levels might be located at 1.2765 (daily low), 1.2650 (June 8 & 10 low) and 1.2615 (Apr 22 low). On the opposite direction, resistance could be seen 1.2795 (Asian session low), 1.2835 (daily high) and 1.2855 (July 14 & 15 low).