USD/CAD filled the gap, back below 1.2900

The Canadian dollar has gathered further traction today, now dragging USD/CAD back below the 1.2900 key support.

USD/CAD fades the spike to 1.3000

Spot has reverted the initial positive tone, coming down from the boundaries of the psychological handle at 1.3000 the figure after the fiasco at the Doha meeting to re-test sub-1.2900 levels, amidst a recovery of crude oil prices and USD-selling.

Next on tap in Canada will be February’s Foreign Transactions, while the NAHB index and speeches by FOMC’s Dudley and Kashkari are expected in the US docket.

USD/CAD significant levels 

As of writing the pair is up 0.59% at 1.2891 and a breakout of 1.3024 (20-day sma) would open the door to 1.3219 (high Apr.5) and then 1.3298 (high MAr.24). On the flip side, the next support aligns at 1.2744 (2016 low Apr.13) followed by 1.2652 (low Jul.10 2015) and finally 1.2124 (monthly low Jun.24 2015).