USD/CAD flirting with highs near 1.2880, FOMC, EIA eyed

It seems the greenback has recovered the smile on Wednesday, now sending USD/CAD to the area of daily highs near 1.2880.

USD/CAD supported at 1.2800

The pair is posting gains for the first time after seven consecutive sessions with losses, as the buck is now extending its rebound after bottoming out in fresh 2-month lows in the 1.2800 neighbourhood on Tuesday.

In addition, today’s pullback in crude oil prices is removing some support from CAD, with the barrel of West Texas Intermediate hovering over the $46.20 area after yesterday’s draw in crude oil stockpiles according to the API’s report.

Ahead in the session, the EIA’s weekly report on crude oil inventories is due followed by the more relevant FOMC minutes.

USD/CAD significant levels

As of writing the pair is advancing 0.16% at 1.2881 and a break above 1.2907 (base of the 3-month rising channel prev support now resistance) would aim for 1.2975 (55-day sma) and then 1.3070 (20-day sma). On the flip side, the next support lines up at 1.2799 (low Aug.16) followed by 1.2674 (low Jun.23) and finally 1.2651 (low Jun.8).