USD/CAD bounces towards 1.3000, despite higher Oil

The USD/CAD pair stages a minor rebound from one-week lows and now makes headway towards 1.30 handle, as markets ignore the persisting oil-price rally.

USD/CAD ignored Oil price action

Currently, the USD/CAD pair trades 0.30% higher at 1.2973, extending recovery from ahead of 1.29 handle. The USD/CAD pair is seen extending its recovery mode into early Europe, with the USD bulls making a strong comeback after Friday’s massive sell-off. The US dollar index, which measures greenback’s relative strength against its six major peers, now rallies +0.32% to 94.20, recovering from NFP-led drop to 93.86 levels.

Moreover, markets appear to ignore higher oil prices backed by Friday’s USD slump, keeping the Loonie under pressure versus its American counterpart. Both crude benchmarks advances nearly 1%, with Brent and WTI just ahead of 50 and 49 handle respectively.

Looking ahead, the major will continue to get influenced by the USD moves as well as oil-price action ahead of Fed Yellen’s speech, which is expected to inject fresh bout of volatility into the markets.

USD/CAD Technical Levels

To the upside, the next resistances are seen near 1.3000 (round number) and 1.3032/50 (20-DMA/ psychological levels). To the downside, immediate support might be located at 1.2911 (six-day low) and below that at 1.2879 (50-DMA).