USD/CAD comes down to test 1.3200 and below

After a brief test of daily highs near 1.3240 in early trade, USD/CAD has now returned to the 1.3200 neighbourhood ahead of US key releases.

USD/CAD attention to oil, data

The pair met downside pressure via a stronger CAD, as today’s recovery in crude oil prices is lifting the West Texas Intermediate to session tops around the $44.00 mark per barrel.

Later in the NA session, the greenback will take centre stage in light of the publication of US Retail Sales, the Philly Fed Manufacturing Survey and Industrial Production among other important releases.

In the meantime, spot is advancing for the fourth consecutive week for the time being, trading around the middle of the 4-month rising channel above the 1.3200 handle and with crude oil dynamics and speculations on a Fed’s rate hike as the main drivers behind the pair’s price action.

USD/CAD significant levels

As of writing the pair is losing 0.04% at 1.3190 and a break below 1.3024 (base of the 4-month rising channel) would aim for 1.3007 (20-day sma) and then 1.2827 (low Sep.6). On the flip side, the next up barrier aligns at 1.3253 (high Jul.27) followed by 1.3265 (200-day sma) and finally 1.3311 (38.2% Fibo retracement of the 2016 drop).