USD/CAD recovers further to test 10-DMA

The USD/CAD pair’s recovery ahead of 1.30 handle regained traction in the mid-Asian session, with the rate now extending beyond 1.31 handle in a bid to test 10-DMA located at 1.3133.

USD/CAD catches bid as Oil pares gains

Currently, the USD/CAD pair trades +0.06% higher near session highs of 1.3123, gradually extending higher towards 1.3150 levels. The major found renewed bids near 1.3080 region and extended its recovery mode above 1.31 handle amid a minor-recovery staged by the greenback versus its major peers, particularly after yesterday’s USD/JPY-induced massive sell-off. Meanwhile, the US dollar index advances +0.15% to 95.16 levels, having recovered from six-week lows reached at 94.94 on Tuesday.

While the latest leg higher in the USD/CAD pair can be attributed to the stalled buying in oil post-bullish API inventory report, as investors continue to remain wary amid persisting supply glut worries. Both crude benchmarks trade nearly 0.60% higher so far this session.

Next of relevance for the major remains the US ADP employment data, followed by ISM non-manufacturing PMI report and EIA crude stockpiles data lined up for release later in the NA session.

USD/CAD Technical Levels

To the upside, the next resistances are seen near 1.3133/50 (10-DMA/ round figure) and 1.3187 (Jul 29 high). To the downside, immediate support might be located at 1.3089/70 (5 & 20-DMA) and below that at 1.3050 (psychological levels).