USD/CAD pauses sell-off, despite higher Oil

The US dollar stalled its downslide versus the Canadian dollar in the Asian session this Tuesday, with USD/CAD now wavering in a tight range around 1.34 handle.

USD/CAD moved slightly away from weekly lows

Currently, the USD/CAD pair drops -0.10% to 1.3403, meandering near session lows of 1.3396. The major is seen moving back and forth in a 20-pips tight range, consolidating the steep drop witnessed yesterday on the back of more-than 4% rally in oil prices, triggered by reports of progressive talks on the OPEC output cut deal, which sent the Loonie to fresh weekly tops.

The spot remains unperturbed by renewed strength in the oil prices, as the CAD bulls appear to have face some exhaustion and gather pace for the next leg higher, as focus now shifts towards the crucial Canadian retail sales data and API crude inventories report for fresh direction on the USD/CAD pair.

USD/CAD Technical Levels

To the upside, the next resistances are seen near 1.3438 (daily pivot) and 1.3471 (5-DMA) and from there to 1.3487/1.3500 (10-DMA/ round number). To the downside, immediate support might be located at 1.3382 (weekly low) and below that at 1.3350 (zero figure) and at 1.3311 (50-DMA).

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