FxWirePro: CAD benefits from higher oil, USD/CAD down for 4th consecutive session

USD/CAD extends falls for the 4th straight session as CAD supported higher by rise in oil prices.

• Oil rose on Monday after Russia mulls OPEC talks, and as report showed a fifth weekly fall in the number of oil rigs in the United States 
   
• Brent was 55 cents higher at $48.68 a barrel by 1130 GMT, U.S. crude was 45 cents higher at $45.99 a barrel after settling up 80 cents
   
• Failure of USD/CAD price action ahead of 1.3470 (September 29) has hit bulls hard, pair extends falls for the 4th consecutive session 
   
• 1.3470 is 61.8% Fibo retrace of the 1.6197-0.9059 (2002 to 2007 fall), a strong resistance zone
   
• Price action has dipped into the cloud and a daily close below cloud top at 1.3148 adds further downside pressure
   
• USD/CAD is currently trading at 1.3122 with immediate support at 1.3013 (Daily Low Sep 18) and resistance at 1.3175 (Session High Oct 5)
   
• A slew of US macro releases (US Markit Svcs PMI, employment trends, non-mfg ISM) due later in the New York session likely to influence further direction in the pair
   

Resistance Levels:

R1: 1.3175 (Session High Oct 5)

R2: 1.3235 (Kijun Sen)

R3: 1.3264 (21-Day MA)

Support Levels: 

S1: 1.3013 (Daily Low Sep 18)

S2: 1.2952 (Daily low Aug 12)

S3: 1.2944 (Daily Low Jul 30)