USD/CAD rebounds to 100-DMA as Oil tumbles

The USD/CAD pair found fresh bids at 1.2930 region and embarked upon a solid recovery mode towards 100-DMA located at 1.2973, in response tumbling oil prices.

USD/CAD rebounds from Wednesday’s low

Currently, the USD/CAD pair trades +0.27% higher at fresh session highs of 1.2970, now testing the 100-DMA upside barrier. The USD/CAD pair took a pause from the recent sell-off and climbed back higher mainly driven by weaker oil prices amid receding fears over the Norwegian strike outages and growing global supplies. Both crude benchmarks are up more than 1% so far this session.

Moreover, the bulls also cheer a broadly stronger US dollar, while the persistent upbeat sentiment in the markets and higher oil prices continue to drive the major. The USD index jumps +0.25% to 95.95.

Focus now turns towards the fundamentals, with the Canadian GDP and US jobless claims lined up for release later in the NA session.

USD/CAD Technical Levels

To the upside, the next resistances are seen near 1.3000 (psychological levels) and 1.3043/50 (Jun 29 High). To the downside, immediate support might be located at 1.2931 (Jun 29 & daily low) and below that at 1.2878 (20-DMA).