USD/CAD Eyeing 1.2750 for Further Recovery
The USD/CAD
pair seems to build on to its' Tuesday's recovery gains and is now
comfortably trading above 1.2700 round figure mark at 1.2730 level.
Weakness
in crude oil prices helped the USD/CAD pair to stage a sharp recovery
from Tuesday's low of 1.2461 to back above 1.2700 mark. On Tuesday,
crude built on to its Monday's drop, taking the commodity back below
$44.00/barrel mark as fears of oversupply resurface ahead of Wednesday's
weekly inventory data that are expected to show an increase in crude
supplies. Moreover, broad based USD recovery also suppressed the
commodity prices.
Investors will also look forward to the US
private sector jobs data (ADP report) and ISM non-manufacturing index
for further recovery for the USD/CAD pair. The pair is currently trading
close to its immediate resistance near 1.2750 level.
Technical levels to watch
Should
the pair manage to extend its recovery beyond 1.2750, it seems to
immediately dart towards 1.2850-55 resistance, which if conquered should
assist the pair towards 1.2900 handle.
On the flip side, drop
back below 1.2700 round figure mark seems to find immediate support near
1.2660-55 horizontal area, which if broken negates prospects of any
further recovery and thus dragging the pair back towards 1.2550 support
area.
