USD/CAD trims losses, regains 1.3200 and beyond

Pablo Piovano FXStreet

The greenback is recovering part of its shine today, now pushing USD/CAD to retake levels above the 1.3200 handle.

USD/CAD supported near 1.3160

After hitting fresh 6-month peaks near 1.3280 in early trade, the pair’s upside lacked of follow through and slipped back to the vicinity of 1.3160 as the risk-on sentiment was supporting the demand for CAD.

Ahead in the session, Governor Poloz is due to speak later on ‘Cross-Border Integration and Monetary Policy’, and is expected to reiterate the dovish tone seen at his speech yesterday.

Back to the US, the S&P/Case-Shiller index is due followed by CB’s Consumer Confidence and Sevices PMI gauged by Markit. In addition, FOMC’s VP S.Fischer is also expected to give a speech.

CAD weakness is also deriving traction from the renewed offered bias around crude oil prices, with the barrel of West Texas Intermediate shedding more than 1% to the $45.40 region ahead of the API’s weekly report on crude stockpiles.

USD/CAD significant levels

As of writing the pair is losing 0.02% at 1.3223 facing the next support at 1.2996 (low Sep.22) ahead of 1.2818 (low Sep.7) and then 1.2759 (low Aug.18). On the other hand, a break above 1.3276 (high Sep.27) would open the door to 1.3311 (38.2% Fibo of the 2016 drop) and finally 1.3575 (50% Fibo of the 2016 drop).

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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