USD/CAD retreats from highs, around 1.3260

After climbed to fresh highs beyond the 1.3300 handle on Friday, USD/CAD has now eased to the 1.3260/55 band ahead of the opening bell in Europe.

USD/CAD attention to oil, risk trends

Spot has managed to clinch fresh 7-month tops above 1.3300 the figure following results from the Canadian and US labour markets at the end of last week, although the upside sentiment seems to have eased a tad today amidst the expected inactivity due to the holiday on both sides of the border.

In the meantime, crude oil prices are taking a breather so far today, dragging the barrel of West Texas Intermediate back below the $50.00 mark, or nearly 1% down.

Regarding positioning, CAD net shorts have increased for the second week in a row, reaching the highest levels since March 22 during the week ended on October 4 and according to the latest CFTC report.

USD/CAD significant levels

As of writing the pair is losing 0.26% at 1.3261 facing the next support at 1.3204 (200-day sma) followed by 1.2996 (low Sep.22) and then 1.2818 (low Sep.7). On the upside, a breakout of 1.3314 (high Oct.7) would aim for 1.3575 (50% Fibo of the 2016 drop) and finally 1.3839 (61.8% Fibo of the 2016 drop).