USD/CAD Keeps the Red as Oil Turns Positive
The USD/CAD pair moves-off multi-year troughs and steadies around the mid-point of 1.26 handle amid improved risk sentiment.
USD/CAD rejected near 1.2660
Currently,
the USD/CAD pair drops -0.12% to 1.2642, heading for a retest of daily
lows struck at 1.2632 in the last hour. The bulls are seen tightening
their grip on the Canadian dollar as the oil prices halt the corrective
slide and revert to the green zone. Both crude benchmarks now trade
+0.20% higher, hovering near fresh five-month peaks reached yesterday
after the EIA inventory report showed smaller than expected rise in the
US crude supplies.
Moreover, the recent optimistic remarks from
BOC Governor Poloz also keep the sentiment around the loonie
underpinned. BOC Chief noted that the economic data have been
encouraging and it would require three-year adjustment to oil price
drop.
Meanwhile, the oil markets will continue to dominate the
moves in the USD/CAD pair. Besides, the US economic releases will be
also closely watched for further momentum on the major.
USD/CAD Technical Levels
To
the upside, the next resistances are seen near 1.2657/62 (daily pivot
& high) and 1.2720/43 (daily R1/ 5-DMA). To the downside, immediate
support might be located at 1.2594 (Apr 20 Low) and below that 1.2550
(July 2015 levels).
