USD/CAD remains stuck in a narrow range despite oil sell-off

USD/CAD has been restricted to a narrow range of 1.3350-1.3430 for more than a week now, despite the sharp sell-off in the oil prices. 

Hovers around 1.34

The spot was last seen trading around 1.34 handle. Broad based USD sell-off on heightened odds of Trump victory ensured the USD/CAD remained range bound despite the drop in oil prices. 

Oil benchmarks have been falling sharply on fading prospects of OPEC deal. A sharp spike in the oil inventories further added to the bearish pressure around oil. 

CAD usually follows oil prices closely; however, the broad based USD weakness has made sure the pair avoided sharp gains. The focus today is on the US and Canada labor market data.    

USD/CAD Technical Levels

A break above 1.3434 (Oct 28 high) would open doors for 1.3458 (Sep 2015 high) above which the psychological level of 1.35 could be put to test. On the other hand, a breakdown of support at 1.3378 (10-DMA) would expose 1.3354 (Nov 1 low), under which 1.33 (zero figure) could be put to test.