USD/CAD attempts tepid-bounce as Oil turns lower

The US dollar attempts a minor-recovery against its Canadian counterpart in early Europe, now pushing USD/CAD gradually away from multi-month lows.

USD/CAD tested Tuesday’s high

Currently, the USD/CAD pair drops -0.95% to 1.2773, retreating from session lows struck at 1.2752 in the Asian morning. The bulls were offered respite from the retreat in oil prices, which induced a minor correction in the loonie, after having hit fresh nine-month highs at 1.2750 in the last US session.

Meanwhile, Brent trades 0.20% higher, while WTI sinks over 1%, after heavy build reflected by API weekly stockpiles reports outweigh the gains seen on the reports of output freeze consensus reached by Saudi and Russia.

Moreover, renewed strength in the US dollar against its major peers also aided the recovery in the USD/CAD pair. Attention now shifts towards the BOC monetary policy decision due later today for next direction on the loonie.

USD/CAD Technical Levels

To the upside, the next resistances are seen near 1.2800/14 (round number/ daily pivot) and 1.2886/74 (5-DMA/ 1h 50-SMA). To the downside, immediate support might be located at 1.2750 (Apr 12 Low) and below that 1.2700 (July levels).