The Loonie continues in rally mode, helped by crude oil

Daily Currency Update

CAD - Canadian DollarThe Loonie has erased most of its gains since Monday's trading session due to a temporary price correction of the crude oil WTI and some pessimistic views of the global economy. According to IMF Managing Director Christine Lagarde, the global economy is in a "precarious" position as global growth around the world slows, but she added that a recession isn't likely in the near-term. Furthermore, the WTO seemed to echo the negative sentiment by saying that there has been a "synchronized deceleration," slashing its global trade growth forecast. This morning though, the Loonie is trading strongly after the crude oil WTI trades slightly to the upside. The USD/CAD is falling (stronger Loonie) 0.22 percent, and it was helped by a weak US dollar, while crude oil gained.Technically speaking, the USD/CAD pair is touching an important support at the 1.3300 handle this morning but the rally of crude oil WTI seems exhausted. However, some intraday levels to watch are level supports at 1.3286 and 1.3270, with the strongest one being at 1.3237. Some resistance levels to watch in case we see weakness in the Loonie are 1.3316 and 1.3326, with the strongest one being at 1.3340.