USD/CAD rejected at 1.3200 handle, retests session low at 1.3150

Haresh Menghani FXStreet

The USD/CAD pair reversed all of its gains to 1.3200 handle and is now headed back towards retesting daily trading range lows amid strong recovery witnessed in crude oil prices.

Currently hovering around 1.3150 region, renewed selling pressure around the greenback restricted further up-move and the pair faced rejection near 1.3200 handle. Moreover, the pair lost its upside momentum as rising oil prices provided some respite to the commodity-linked currency - loonie, which was trading weaker for the second consecutive session on the back Friday's disappointing releases from Canada.

Next in focus would be the release of new home sales data from the US ahead of the first US Presidential debate between Hillary Clinton and Donald Trump later today.

Technical levels to watch

A follow through weakness below 1.3150 support is likely to accelerate the slide immediately towards 1.3130, which if broken has the potential to drag the pair back towards 1.3100 round figure mark. Meanwhile on the upside, 1.3200 handle now seems to have emerged as immediate strong resistance. A convincing move above this strong hurdle should now trigger a fresh bout of short-covering rally immediately towards 1.3245-50 resistance before the pair eventually rises to its next major resistance near 1.3285-90 region.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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