USD/CAD tumbles to 1.3100 as crude oil soars

USD/CAD lost more than a hundred pips during the last 60 minutes as crude oil jumped more than 4% after reports suggested that the OPEC reached an output-cap agreement. The potential deal weakened the US dollar in the market and also boosted stocks in Wall Street.

The pair fell from 1.3250 to 1.3102, hitting the lowest level since last Friday. It was trading slightly above daily lows, still with a strong downside momentum. The WTI barrel climbed from $44.60 to $46.50 on the initial report. Details about the agreement were expected.

The decline in the USD/CAD pair implicates a sharp change in the short-term momentum. The pair went from testing a medium-term resistance area near 1.3280 to fall toward the 20-day moving average.

USD/CAD levels to watch

To the upside, resistance levels might be seen at 1.1360 (Sep 27 low), 1.3195 and 1.3270 (daily high). On the flip side, support is seen at 1.3100 (psychological), 1.3085 (20-day moving average) and 1.3030 (Sep 23 low).