The greenback is recovering part of its shine today, now pushing USD/CAD to retake levels above the 1.3200 handle.
USD/CAD supported near 1.3160
After hitting fresh 6-month peaks near 1.3280 in early trade, the pair’s upside lacked of follow through and slipped back to the vicinity of 1.3160 as the risk-on sentiment was supporting the demand for CAD.
Ahead in the session, Governor Poloz is due to speak later on ‘Cross-Border Integration and Monetary Policy’, and is expected to reiterate the dovish tone seen at his speech yesterday.
Back to the US, the S&P/Case-Shiller index is due followed by CB’s Consumer Confidence and Sevices PMI gauged by Markit. In addition, FOMC’s VP S.Fischer is also expected to give a speech.
CAD weakness is also deriving traction from the renewed offered bias around crude oil prices, with the barrel of West Texas Intermediate shedding more than 1% to the $45.40 region ahead of the API’s weekly report on crude stockpiles.
USD/CAD significant levels
As of writing the pair is losing 0.02% at 1.3223 facing the next support at 1.2996 (low Sep.22) ahead of 1.2818 (low Sep.7) and then 1.2759 (low Aug.18). On the other hand, a break above 1.3276 (high Sep.27) would open the door to 1.3311 (38.2% Fibo of the 2016 drop) and finally 1.3575 (50% Fibo of the 2016 drop).
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