USD/CAD flirting with highs near 1.2930

Pablo Piovano FXStreet

The renewed bid tone around the greenback is pushing USD/CAD to test the upper bound of the range near 1.2930.

USD/CAD looks to EIA’s report

Spot is recovering the ground lost on Tuesday’s pullback to the mid-1.2800s, retaking the 1.2900 handle and beyond and backed by a firmer note in USD amidst swelling cautiousness ahead of Yellen’s speech on Friday.

Collaborating with the upside, US crude oil stockpiles have increased by nearly 4.5 million barrels during last week, according to yesterday’s report by API. In addition, gasoline inventories rose by more than 2.2 million barrels, somewhat limiting the downside in crude prices.

Ahead in the session, Existing Home Sales and the weekly report on crude oil inventories by the EIA are due in the US calendar.

USD/CAD significant levels

As of writing the pair is advancing 0.20% at 1.2938 and a break above 1.2966 (high Aug.22) would aim for 1.3001 (20-day sma) and then 1.3202 (high Aug.5). On the flip side, the next support aligns at 1.2759 (low Aug.18) followed by 1.2674 (low Jun.23) and finally 1.2651 (low Jun.8).

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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