USD/CAD: 1.3200 tested amid higher Oil & weaker DXY

The Canadian dollar regains footing against its American rival in early, now pushing USD/CAD towards the boundaries of 1.3200 levels.

USD/CAD: 1.3165 back on sight?

The USD/CAD pair failed to sustain the bounce near 1.3240 levels and turned lower, as oil prices stalled its sell-off, offering fresh support to the resource-linked Loonie.

Moreover, an extension of the corrective slide in the US dollar against its main competitors, also collaborates to the renewed downside in the major. Meanwhile, the USD index drops -0.10% to 97.14, retreating from two-day peaks of 97.31.

The Canadian dollar looks to extend its winning streak, fuelled by a hawkish shift in the BOC’s policy stance, after BOC policymaker Wilkins’ noted last week, ‘Will assess if all the stimulus in place is still needed as economy growth continues and, ideally, broadens further”.

Looking ahead, the major looks forward to the Fedspeaks and the US current account data due later in the NA session, while the US API crude inventories report will be also eyed for fresh impetus on the commodity-currency.

USD/CAD Technical levels                

The next resistance can be seen at 1.3229 (daily high), 1.3258 (Jun 19 high) and 1.3288 (10-DMA). Next support to the downside can be found at 1.3200/1.3191 (zero figure/ NY low), 1.3165 (4-month lows) and 1.3150 (key psychological support).