USD/CAD rebounds sharply form 3-week lows and erases losses

USD/CAD made a strong comeback during the American session and erased all losses. The pair rose more than 80 pips from the lows and is trading at 1.3345, marginally above yesterday’s closing price. 

Earlier today, the pair was moving with a bearish bias and tumbled after the release of a better-than-expected Canadian retail sales report. It bottomed at 1.3264, the lowest since February 28. 

Then it started to recover and accelerated to the upside move on the back of a recovery of the US dollar against commodity currencies and also amid a decline in crude oil prices. 

WTI supported near $48, eyes on API figures

Levels to watch 

To the upside, immediate resistance could be seen at 1.3355 (American session high), 1.3375/80 (Mar 17 high) and 1.3430 (Mar 13 low). On the downside, the area around 1.3205 ( Mar 20 low), 1.3260/65 (daily low) and 1.3210/15 (Feb 07 & 22 high).