USD/CAD Regains 1.2800, Looking to Stabilize Here
It seems the greenback has recovered the smile on Wednesday, with USD/CAD now retaking the 1.2800 neighbourhood.
USD/CAD attention to oil, BoC
CAD
is shedding part of its recent gains vs. the US dollar after dragging
spot to fresh multi-month lows in the mid-1.2700s on Wednesday, levels
last traded in mid-July 2015. The down move has come in response to a
strong rebound of crude oil prices, with the barrel of West Texas
Intermediate hitting 2016 peaks beyond the $42.00 mark, albeit receding a
tad afterwards.
Ahead in the day, US Retail Sales are due ahead
of the weekly report on crude oil inventories by the EIA. In Canada, the
BoC will hold its monetary policy meeting, expected to keep its stance
unchanged.
USD/CAD significant levels
As
of writing the pair is up 0.23% at 1.2801 and a breakout of 1.3051
(20-day sma) would open the door to 1.3208 (23.6% Fibo of 1.4692-1.2750)
and then 1.3391 (200-day sma). On the flip side, a the next support
aligns at 1.2750 (2016 low Apr.12) followed by 1.2652 (low Jul.10 2015)
and finally 1.2124 (monthly low Jun.24 2015).