USD/CAD weaker, breaks below 1.3400 ahead of data

The greenback remains on the defensive during the first half of the week, with USD/CAD slipping below the key support at 1.3400 the figure.

USD/CAD focus on CAD data, oil

The pair is retreating for the second session in a row today to sub-1.3400 levels, or 2-week lows, following a persistent selling pressure surrounding the US dollar and a renewed optimism in crude oil prices.

In fact, the barrel of West Texas Intermediate is extending the upside today, up more than 1% to the vicinity of the $49.00 mark ahead of the API report on US stockpiles due later in the NA session.

In the data space, Canadian Retail Sales are expected to have expanded at a monthly 0.6% during September, while US Existing Home Sales are seen a tad lower in October.

Despite the ongoing rebound, CAD remains under pressure from the positioning side, as speculative net shorts remained in multi-week highs during the week ended on November 30, as per the latest CFTC report.

USD/CAD significant levels

As of writing the pair is retreating 0.25% at 1.3385 and a break below 1.3311 (38.2% Fibo of the 2016 drop) would expose 1.3270 (55-day sma) and finally 1.3260 (low Nov.9). On the flip side, the immediate hurdle lines up at 1.3566 (high Nov.18) followed by 1.3575 (50% Fibo of the 2016 drop) and finally 1.3590 (high Nov.14).

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