USD/CAD drops to lows near 1.2900

The Canadian dollar is now gathering further traction vs. its American neighbour today, dragging USD/CAD to daily lows near 1.2900 the figure.

USD/CAD lower on oil rebound

CAD continues to derive support from crude oil prices today, with the barrel of West Texas Intermediate advancing to fresh YTD tops above the $47.00 mark and leaving behind April’s tops around $46.80.

The greenback remains on the back footing at the beginning of the week, eroding part of the strong recent gains and somewhat interrupting the ongoing rally ahead of US releases: NY Empire State index, NAHB index and TIC Flows.

USD/CAD significant levels 

As of writing the pair is down 0.24% at 1.2909 and a breakdown of 1.2768 (low May 12) would open the door to 1.2461 (2016 low May 3) and finally 1.2124 (monthly low Jun.24 2015). On the flip side, the next hurdle lines up at 1.2978 (55-day sma) followed by 1.3015 (high May 9) and then 1.3219 (high Apr.5).