USD/CAD rebounds to 1.2650, session tops

Pablo Piovano FXStreet

The greenback is now trading on a better footing vs. its Canadian counterpart, pushing USD/CAD to fresh daily tops near 1.2650.

USD/CAD attention to US data

The pair is recovering part of the ground lost after yesterday’s sharp sell off to the a1.2600 neighbourhood, coincident with the 21-day sma.

USD sold off after Wednesday’s FOMC minutes showed the Committee remains split over the prospects of inflation, while some consensus emerged regarding the timing of the Fed’s balance sheet reduction, which should be relatively soon.

The pair’s up tick is also reinforced by the softer tone in crude oil prices, with the barrel of West Texas Intermediate currently extending the downside to the mid-$46.00s, testing the 55-day sma at the same time.

On the data front, Canadian June’s manufacturing shipments are due along with releases in the US docket, including initial claims followed by the Philly Fed manufacturing gauge, industrial production and capacity utilization.

In addition, Dallas Fed R.Kaplan (voter, hawkish) and Minneapolis Fed N.Kashkari (voter, dovish) are due to speak.

USD/CAD significant levels

As of writing the pair is gaining 0.17% at 1.2640 and it faces the immediate hurdle at 1.2686 (10-day sma) seconded by 1.2738 (23.6% Fibo of the 2017 drop) and finally 1.2781 (high Aug.15). On the upside, a breach of 1.2588 (low Aug.17) would aim for 1.2412 (2017 low Jul.27) and then 1.2124 (low Jun.18 2015).

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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