USD/CAD Remains Capped Below 1.2560, US Data Eyed

USD/CAD Remains Capped Below 1.2560, US Data Eyed

2 May 2016, 13:19
Roberto Jacobs

USD/CAD Remains Capped Below 1.2560, US Data Eyed

The USD/CAD pair extends its side-trend into Europe, oscillating in 30-pips slim range amid subdued trading seen in the oil prices, as attention now turns towards the US data lined up for release later today.

USD/CAD trades below all major DMAs

Currently, the USD/CAD pair drops -0.09% to 1.2525, moving-off fresh session lows struck at 1.2534 in the last hour. The Loonie is seen paring gains, despite a minor-recovery attempted by the oil prices, as the sentiment around the USD/CAD pair is largely driven by the USD price action against its major rivals.

Meanwhile, the US oil dips -0.72%, Brent loses over -1%, and the USD index drops -0.15% to trade near fresh 8-month lows of 92.79 levels.

Looking ahead, the pair will continue to track the broader market sentiment and the oil prices ahead of the release of US ISM manufacturing PMI report, which may have major impact on the US dollar.

USD/CAD Technical Levels

To the upside, the next resistances are seen near 1.2558/60 (5-DMA/ key barrier) and 1.2600/15 (round number/ 10-DMA). To the downside, immediate support might be located at 1.2500/1.2495 (round number/ Apr 29 low) and below that 1.2471/50 (July 2015 low/ June 2015 Levels).


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