USD/CAD manages to regain 1.28 amid higher Oil

The USD/CAD pair bounced-off a brief dip below 1.28 barrier and now attempts recovery further beyond the last, torn between a better risk environment and strengthening oil prices.

USD/CAD trades below 5-DMA at 1.2820

Currently, the USD/CAD pair trades -0.27% lower at 1.2807, moving-off session lows struck at 1.2793 pre-China open. The USD/CAD pair recovers losses, although remains deep in the red as higher oil prices boost the resource-linked Loonie. Both crude benchmarks ignored bearish EIA inventory report and swung back higher on the back of renewed hopes of a Bremain success.

More so, the ongoing weakness surrounding the greenback on the back of dovish FOMC decision as well Yellen’s testimony, also weighs down on the pair. While stronger Canadian retail sales data also keep the sentiment around the CAD buoyed. The Canadian retail sales climbed 0.9% in April following a downwardly revised fall of 0.8% in the previous month, and against an 0.8% advance predicted.

Meanwhile, the major will continue to track the broader market sentiment in the session ahead as the Brexit poll begins in a few hours.

USD/CAD Technical Levels

To the upside, the next resistances are seen near 1.2849/58 (daily high/ 10-DMA) and 1.2887 (50-DMA). To the downside, immediate support might be located at 1.2747 (Jun 13 Low) and below that at 1.2700 (daily S2).