USD/CAD softer, back below 1.3100

The Canadian Dollar is now picking up some pace vs. its American counterpart, sending USD/CAD back to sub-1.3100 levels.

USD/CAD upside capped near 1.3120

The upside momentum around the buck has eased a tad from overnight tops in the vicinity of 1.3120, dragging the pair back below the key support at 1.3100 the figure early in the European trading hours.

Spot is still looking to stabilize following the drop from last weeks tops above the 1.3200 handle, although a clear catalyst for a clearer move still remains absent, as CAD’s sensitiveness to crude oil dynamics and/or yields spread has been running out of steam in recent sessions.

However, CAD remains underpinned by speculative positioning, with net longs climbing to the highest level since late September in the week to February 7 and according to the latest CFTC report.

USD/CAD significant levels

As of writing the pair is up 0.023% at 1.3089 and a surpass of 1.3132 (20-day sma) would aim for 1.3141 (200-day sma) and finally 1.3215 (high Feb.7). On the other hand, the immediate support aligns at 1.3061 (low Feb.10) seconded by 1.3016 (low Jan.17) and then 1.2967 (low Jan.31).