USD/CAD corrects lower to test 1.3150 as Oil bounces

The US dollar is seen losing ground versus its Canadian counterpart in the mid-Asian trades, sending USD/CAD further away from five-tops reached at 1.3190 a day before.

USD/CAD losing sight of 1.32 handle

Currently, the USD/CAD pair drops 0.10% to 1.3159, hovering close to fresh session lows struck at 1.3156. USD/CAD extends its corrective slide in the mid-Asian trades, as a recovery in oil prices offer some respite to the CAD bulls after yesterday’s sell-off.

Both crude benchmarks paused the downward spiral and edged higher this session as markets cheered a less than forecast build in US crude reserves, the API report showed. Meanwhile, Brent rises +0.36% to $ 47.27, while the US oil gains +0.47% to trade just ahead $ 45 barrier.

Meanwhile, the major largely ignored the ongoing strength in the USD index backed by a firmer USD/JPY pair, and extends lower amid a relatively calmer session this Wednesday. Markets now look forward to BOC governing council member Wilkins speech due ahead of the EIA crude inventory report likely to be published later in the NA session.

USD/CAD Technical Levels

To the upside, the next resistances are seen near 1.3171 (200-DMA) and 1.3191 (5-week highs). To the downside, immediate support might be located at 1.3100 (round figure) and below that at 1.3029 (50-DMA).