USD/CAD climbs to fresh daily highs as oil plummets after inventory data

USD/CAD rallied to fresh daily highs as the loonie tracked oil lower following EIA crude inventory data.

US crude oil inventories have unexpectedly increased by 1.671 million barrels during the last week versus a forecasted drop of  2.257 million barrels, according to the  Energy Information Administration.

WTI fell about 3% through the $42 level on the data and bottomed out at $41.88/bbl. Accordingly, USD/CAD rose from a low of 1.3156 to a fresh daily peak of 1.3223. At time of writing, the pair was trading at 1.3219, up % on the day as investors await the FOMC decision at 18:00 GMT.

USD/CAD levels to watch

In terms of technical levels, next resistances are seen at 1.3223 (Jul 27 high), 1.3307 (200-day SMA) and then 1.3404 (Mar 16 high). On the flip side, supports could be found at 1.3156 (Jul 27 low), 1.3119 (Jul 25 low) and 1.3069 (10-day SMA).