USD/CAD erases gains amid higher Oil & bearish DXY

The Canadian dollar is trying hard to fight back control versus its Canadian counterpart in early Europe, with USD/CAD surrendering all of its gains and now moves further away from three-week tops

USD/CAD comes down to test 5-DMA

Currently, the USD/CAD pair is last seen exchanging hands at 1.3365, almost unchanged on the day, reversing a spike from daily highs of 1.3383. The major appears to have stalled its latest down move, although remains on the offers, as the Loonie finds support from higher oil prices, in wake of bigger-than expected drop in the US crude stockpiles.

While broad based USD correction from multi-year tops also keeps the bulls at bay, driving USD/CAD back in the red zone. Later today, the US docket offers the existing home sales data, while tomorrow’s Canadian CPI and retail sales data alongside the US GDP figures will provide next direction on the major.

USD/CAD Technical Levels

To the upside, the next resistances are seen near 1.3383 (daily high) and 1.3419 (daily R1) and from there to 1.3436 (3-week tops). To the downside, immediate support might be located at 1.3315 (Dec 19 low) and below that at 1.3300 (round figure) and at 1.3283 (10-DMA).