USD/CAD rebounds to 1.3170, supported by oil

The softer tone in the greenback plus the ongoing recovery in crude oil prices has been sustaining the daily decline in USD/CAD to briefly test near 1.3140.

USD/CAD focus on oil, Fed

The pair is coming down from recent 2-month highs near 1.3250 (Friday), shedding around a cent to today’s lows in the 1.3140/35 band following a profit taking sentiment around the greenback and a pick up in crude oil prices.

In fact, the barrel of West Texas Intermediate is gaining more than 1% and advancing above the $44.00 mark for the time being, putting concerns over the supply glut in the back burner as well as dwindling hopes of an output freeze at the OPEC meeting later in the month.

Data wise in the US docket, NAHB index is expected to stay put during the current month at 60 ahead of tomorrow’s key speech by Governor S.Poloz.

USD/CAD significant levels

As of writing the pair is losing 0.39% at 1.3162 facing the next support at 1.3050 (base of the 4-month rising channel) followed by 1.2987 (100-day sma) and then 1.2827 (low Sep.6). On the flip side, a breakout of 1.3249 (high Sep.16) would open the door to 1.3253 (high Jul.27) and finally 1.3311 (38.2% Fibo of the 2016 drop).