USD/CAD Attempts Tepid-Bounce as Oil Turns Lower
The US dollar attempts a minor-recovery against its Canadian counterpart in early Europe, now pushing USD/CAD gradually away from multi-month lows.
USD/CAD tested Tuesday’s high
Currently,
the USD/CAD pair drops -0.95% to 1.2773, retreating from session lows
struck at 1.2752 in the Asian morning. The bulls were offered respite
from the retreat in oil prices, which induced a minor correction in the
loonie, after having hit fresh nine-month highs at 1.2750 in the last US
session.
Meanwhile, Brent trades 0.20% higher, while WTI sinks
over 1%, after heavy build reflected by API weekly stockpiles reports
outweigh the gains seen on the reports of output freeze consensus
reached by Saudi and Russia.
Moreover, renewed strength in the US
dollar against its major peers also aided the recovery in the USD/CAD
pair. Attention now shifts towards the BOC monetary policy decision due
later today for next direction on the loonie.
USD/CAD Technical Levels
To
the upside, the next resistances are seen near 1.2800/14 (round number/
daily pivot) and 1.2886/74 (5-DMA/ 1h 50-SMA). To the downside,
immediate support might be located at 1.2750 (Apr 12 Low) and below that
1.2700 (July levels).
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