USD/CAD hits 6-day lows on higher oil prices

The loonie is the top performer in the FX space on Monday amid thin trading conditions as Canadian markets are closed for the Thanksgiving celebrations.

USD/CAD lost over a hundred pips throughout the day, with strong gains in oil prices giving the Canadian currency tailwinds. Oil prices set new highs for 2016, climbing more than 3% to a peak of $51.59 a barrel.

The pair bottomed out at 1.3139 in recent dealings and it was last trading at 1.3174, recording a 0.79% loss on the day.

USD/CAD levels to watch

In terms of technical levels, next supports are seen at 1.3139 (Oct 10 low), 1.3109 (Oct 4 low) and 1.3067 (Oct 3 low). On the flip side, resistances could be found at 1.3205 (200-day SMA), 1.3277 (Oct 10 high) and 1.3313 (Oct 7 high).