USD/CAD retreats to the lowest level in three weeks

The Canadian dollar is outperforming during the US session on rebounding WTI crude price, and so Canada’s currency approaches daily highs.

As Wall Street trims losses, US yields print fresh highs, the USD/CAD pair is hovering around 1.3510 after hitting at 1.3484, the lowest level in three weeks, amid a significant improvement in market sentiment.

Technically, oil and equities are providing support for the Canadian dollar. The USD/CAD pair broke a relevant support area located at 1.3520 and accelerated the downside. If the pair manages to remain below, more losses under 1.3500 seem probable.

The Canadian dollar is outperforming on Tuesday, supported not only by technical developments but also by higher crude oil prices. The WTI barrel is up by 1.41%, WTI price touched the $81.00 territory on the day, and is trading at $80.92 per barrel at the time of writing versus the previous closing price at $79.30.

In Wall Street, the stock market is off lows with the S&P 500 up by 0.31% as of writing, and the Nasdaq down by 0.80%, off lows. Volume remains low favoring uncoordinated moves.