USD/CAD Eyeing 1.2750 for Further Recovery
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.