FXStreet (Edinburgh) – The Canadian dollar is now giving away initial gains and is now sending USD/CAD to test the 1.4200 neighbourhood.
USD/CAD offered as oil retreats
The pair is snapping a 3-session negative streak today as crude oil prices seems to have resumed their broad bearish picture after last week’s massive short-covering squeeze.
After last week’s rejection from fresh cycle highs around the 1.4700 handle, spot collapsed to the 1.4100 area, where it seems to have found decent support. Data wise in the US docket, the Dallas Fed manufacturing gauge is due later in the NA session, whereas Canadian GDP figures are expected on Friday.
USD/CAD significant levels
As of writing the pair is up 0.31% at 1.4193 with the next resistance at 1.4692 (high Jan.20) followed by 1.4946 (high Apr.7 2003) and then 1.5000 (psychological handle). On the other hand, a break below 1.4111 (low Jan.22) would aim for 1.3812 (3-month uptrend) and finally 1.3784 (55-day sma).
(Market News Provided by FXstreet)