USD/CAD consolidating the downside, but holds 1.2800

The US dollar trades around a flat-line against its Canadian counterpart in early Europe, with USD/CAD extending its side-trend from the Asian trades above 1.28 handle.

USD/CAD hovers near 4-week lows

Currently, the USD/CAD pair trades modestly flat at 1.2822, having posted day’s high at 1.2840 and day’s low at 1.2811. The USD/CAD pair trades absolutely lacklustre, largely torn between a broadly muted US dollar and lower oil prices

The US dollar index, which measures greenback’s relative strength against its six major peers, trades -0.4% at 94, unable to extend the recovery from 93.74 lows.

While both crude benchmarks trade on a weaker footing, with Brent and WTI struggling around 50.50 and 49.60 levels respectively.

Next in focus for the major remains the Canadian Ivey PMI data due to be reported in the NA session, while the API crude stockpiles report will be also closely eyed for further momentum on the resource-linked Loonie.

USD/CAD Technical Levels

To the upside, the next resistances are seen near 1.2846/67 (1h 20-SMA/ daily pivot) and 1.2900/25 (psychological levels/ 5-DMA). To the downside, immediate support might be located at 1.2804 (four-week low) and below that at 1.2751 (daily S1).