USD/CAD rebounds after hitting fresh 1-year lows under 1.2500
|The Canadian dollar moved off daily high during the last two hours but still remains among the top performers on Monday. USD/CAD reached a fresh 1-year low after the beginning of the American session at 1.2481.
From the lows, bounced to the upside, amid a recovery of the US dollar across the board. It is trading at 1.2515, down 0.20% for the day.
Today’s bearish bias is being supported by crude oil prices and Canadian economic data. The WTI is at daily highs above $46.30. In Canada, wholesale sales rose in May 0.9% to a record high, above the 0.5% expected increase. In the US, the preliminary PMI June reading showed higher-than-expected numbers with the index at 54.2 while existing home sales contracted 1.8% to 5.52 million units against the 5.58 million of market consensus.
US Dollar within after US data
Levels to watch
USD/CAD bottomed below the 1.2500 handle but quickly managed to rise on top. If it drops back below the bearish momentum could rise again. Below daily lows, the next support might be seen at 1.2460 (May 3, 2016 low).
While if the pair remains above, a consolidation could take place. Resistance levels might be seen at 1.2555 (daily high) and 1.2575 (short-term downtrend line); above the last one, the odds of a more significant correction could rise.
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