USD/CAD back to positive near 1.2980

After bottoming out in the 1.2920 area, the greenback has managed to regain momentum and lift USD/CAD back to the area of session tops near 1.2980.

USD/CAD lower on oil drop

The pair remains on the upper end of the recent range although off overnight highs above the critical 1.3000 handle, supported by a now weaker sentiment surrounding CAD as crude oil prices keeps losing ground.

In addition, recent rains and cooler temperatures in Western Canada have prevented wildfires of spreading further, alleviating at the same time fears of disruption in crude output.

On the data front, NFIB’s Business Optimism index has surprised to the upside for the month of April, while the API report on crude stockpiles is due later in the NA session.

USD/CAD significant levels 

As of writing the pair is up 0.12% at 1.2978 and a breakout of 1.3015 (high May 9) would aim for 1.3023 (55-day sma) and then 1.3219 (high Apr.5). On the flip side, the next support aligns at 1.2745 (20-day sma) followed by 1.2461 (2016 low May 3) and finally 1.2124 (monthly low Jun.24 2015).