USD/CAD attempts a tepid-bounce to 1.3100

The USD/CAD pair is seen extending its downward trajectory into a second-day today, although now attempts a minor-bounce in early Europe, in an effort to reclaim 1.31 handle.

USD/CAD: 100-DMA at 1.3060 on sight?

Currently, the USD/CAD pair drops -0.25% to 1.3094, having struck daily lows at 1.3083 in early Asia. The major faces double whammy amid broad based US dollar weakness on one hand, while higher oil prices also continue to support the resource-linked Loonie.

The greenback remains broadly offered amid dwindling Fed rate hike bets after a slew of disappointing US macro releases. Attention now turns towards the Canadian manufacturing sales and US CPI data due later on the day, while the BOC policy decision will take center-stage tomorrow.

USD/CAD Technical Levels

To the upside, the next resistances are seen near 1.3138 (5-DMA) and 1.3178 (20-DMA) and from there to 1.3200 (round figure). To the downside, immediate support might be located at 1.3060 (100-DMA) and below that at 1.3038 (200-DMA) and at 1.3000 (round number).