USD/CAD drops below 1.3200

US dollar weakness resumed during the American afternoon, with USD/CAD falling to fresh 3-week lows sub-1.3200.

The greenback faced another wave of selling while the loonie strengthened alongside with oil following an larger than expected drop in US crude oil inventories. This combo sent USD/CAD plummeting to a low of 1.3190 in recent dealings. At time of writing, USD/CAD is trading at 1.3203, still down 0.7% on the day.

EIA reported on Thursday that US crude stockpiles dropped 7,051 million in the week ended Dec 29 against a decline of 1.715 million barrels expected.

USD/CAD levels to watch

In terms of technical levels, next supports could be found at 1.3190 (Jan 5 low), 1.3108 (Dec 12 high) and 1.3092 (200-day SMA). On the flip side, resistances line up at 1.3249 (100-day SMA), 1.3312 (Jan 5 high) and 1.3360 (20-day SMA).