FXstreet.com (Barcelona) - The Canadian dollar is currently breaking a rally by its American cousin which has lasted seven days, bringing the USD/CAD down from its 5-week high on January 26 at 1.0691 to hit a daily low at 1.0555 in today's European session.

The USD/CAD is now trading sideways apparently having found support at 1.0572, an area which provided resistance to the pair on various occasions in December.

According to UFXBank Research, the CAD's recent weakness is due to drops in crude oil prices and fluctuations in the stock markets coupled with general anxiety over the global economic recovery.

UFXBank Research places support levels at 1.0533 with resistance at 1.0683.