USD/CAD up-move stalled at 1.2980 as oil recovers

A recovery in crude oil prices capped the USD/CAD pair's gain near 1.2980 and the pair is now off day's peak level to currently trade near 1.2960.

A high degree of correlation between crude oil prices and Canadian Dollar continues to play and as oil prices saw a recovery from $48.00 handle, the USD/CAD pair ran into fresh offers at 1.2980.

With the big event risk looming around the Fed minutes, the US Dollar seems unlikely to reverse its strength unless the minutes points to a dovish shift in the central bank's outlook.

Despite of a minor retracement from the vicinity of 1.3000 handle, the pair continues to hold its neck above 50-day SMA region, which points to emergence of renewed buying interest on every dip. However, a drop back below 1.2900 would be the first signs of bulls losing control, thus paving way for resumption of the pair's downward trajectory.

Technical levels to watch

Below 50-day SMA support near 1.2930, 1.2900 round figure mark support would come into play, which if broken should drag the pair to 1.2850 horizontal support.

On the flip side, 1.3000 psychological mark remains an immediate strong barrier for pair, above which the pair is likely to extend its near-term recovery trend towards 1.3145-50 region (April daily closing highs resistance).