The greenback selling pressure seems to have abated, helping the USD/CAD pair to extend its recovery move from session lows near 1.3300 region.
Currently trading around mid-1.3300s, the pair turned positive for the third consecutive session amid a modest greenback recovery. In fact, the key US Dollar Index has managed to bounce off over 5-week lows near 99.85 region and is supportive of the pair's recovery from session low.
Adding to this, a fresh wave of selling pressure around WTI crude oil, which tends to derive demand for the commodity-linked currency - Loonie, also assisted the pair to hold above 100-day SMA support and extend recovery from two-week lows touched on Thursday.
On the economic data front, the release of Canadian Wholesale Sales data, followed by the Chicago Fed National Activity Index and the speech by Chicago Fed President Charles Evans from the US, would now be looked upon for some impetus during the NY trading session.
Technical levels to watch
Immediate resistance is pegged near 1.3370-75 area, above which the pair seems all set to head towards reclaiming the 1.3400 handle, en-route 1.3425-30 horizontal resistance.
On the downside, sustained weakness back below 1.3315-10 immediate support now seems to drag the pair back below 100-day SMA support near 1.3295 region towards retesting 1.3275 support area (Thursday's low) ahead of mid-1.3200s.
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 securities. 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 Forex 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.