USD/CAD flirting with daily lows around 1.2870 ahead of data

The Canadian Dollar trades on a firm note near 1.2870.
Spot keeps the sideline theme between 1.2800 and 1.2950.
US ISM Manufacturing and Markit’s manufacturing PMI next on tap.

Pablo Piovano FXStreet

USD/CAD looks to US data

The pair is flirting with recent lows in the 1.2875/70 band on Monday following a softer tone surrounding the greenback and a bid bias around crude oil prices.

In fact, the greenback has accelerated its correction lower after breaking below the key support at 90.00 the figure when tracked by the US Dollar Index (DXY), as market participants continue to adjust to the recently imposed Chinese tariffs in US imports.

Adding to the buying interest around CAD, prices of the barrel of the West Texas Intermediate stay in the area of recent tops above the critical $65.00 mark, looking to prolong last week’s recovery.

On the positioning front, speculators turned net shorts on CAD for the first time since July 11 2017 during the week ended on March 27, according to the latest CFTC report.

Data wise today, the US manufacturing sector will be in centre stage in light of the publication of the ISM and Markit gauges.

USD/CAD significant levels

As of writing the index is retreating 0.16% at 1.2875 facing immediate contention at 1.2812 (low Mar.27) seconded by 1.2803 (low Mar.12) and then 1.2722 (38.2% Fibo of the 2017 drop). On the flip side, a surpass of 1.2927 (50% Fibo of the 2017 drop) would aim for 1.2936 (high Mar.29) and finally 1.3126 (2018 high Mar.19).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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