FxWirePro: USD/CAD extends overnight rally, 1.3070 in sight

USD/CAD posted impressive gains overnight, hit session high at 1.3028, and is extending the rally as we write.

• The Canadian dollar weakened against its U.S. counterpart as oil prices tumbled, Crude oil was down about 4 percent on Monday
   
• Early election results showed a strong lead by Canadian Liberals in Newfoundland and Atlantic Canada, this was a major swing in favour of Liberals was noted as compared to pre-election polls
   
• If elected, the Liberals, led by Justin Trudeau, plan to increase spending on infrastructure to stoke economic growth, which could boost the CAD
   
• At the time of writing USD/CAD is trading at 1.3043, with next hurdle at 1.3074 (55 EMA) and immediate support at 1.2981 (10 DMA)
   
• Breaks below 1.2981 could see the pair at 1.2944 levels, while on the upside 1.3070 looks likely on the day