• Remains confined within a broader trading range.
• Bullish oil prices help offset resurgent USD demand.
• Today’s economic data eyed for some fresh impetus.
The USD/CAD pair quickly reversed an early dip to 50-day SMA support, near the 1.2820 region, and rebounded around 25-pips from session lows.
Having fallen to one week low, around the 1.2800 handle on Monday, the pair recovered few pips and moved back to its recent trading range held over the past six trading sessions. A combination of diverging forces failed to provide any meaningful impetus and assist the pair to break through its recent trading range.
A strong US Dollar bid tone did not have much of an impact as the same seems to have been offset by prevalent bullish sentiment around crude oil prices, which remains buoyed by Iran sanction worries and underpinned demand for the commodity-linked currency - Loonie.
Moving ahead, today's economic data - monthly Canadian GDP growth figures and the US ISM manufacturing PMI, would be looked upon for some short-term momentum play ahead of a scheduled speech by the BOC Governor Stephen Poloz, later during the NY trading session.
Technical levels to watch
Any subsequent up-move beyond 1.2870 immediate resistance is likely to confront strong hurdle near the 1.2900 handle, above which the pair seems all set to aim towards challenging the 1.2935-40 supply zone.
On the flip side, the 1.2820-1.2800 region (50-day SMA) might continue to protect the immediate downside, which if broken is likely to accelerate the slide towards 1.2745 intermediate support en-route the 1.2700 handle.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.