USD/CAD flirting with session tops near 1.2540

The greenback is prolonging its bounce off recent fresh cycle lows, now pushing USD/CAD to fresh daily highs in the 1.2540 area.

USD/CAD focus on ADP, GDP

Spot is advancing since Monday, extending the rebound from recent lows in the 1.2440 area following a pick up in the demand for the buck and the softer tone in crude oil prices.

In fact, the renewed weakness around crude oil prices has dragged the barrel of West Texas Intermediate to the $46.00 neighbourhood, retreating for the third session in a row to the area of 5-week troughs.

In the same line, the buck has managed to finish Tuesday’s session with gains despite dropping to fresh cycle lows in the boundaries of 91.60, and has currently not only regained the 92.00 handle but also advance towards tops in the mid-92.00s.

Looking ahead, the greenback should stay in centre stage in light of the publication of another revision of US Q2 GDP and the ADP report, all followed by the speech by FOMC’s J.Powell (permanent voter, centrist).

USD/CAD significant levels

As of writing the pair is gaining 0.15% at 1.2530 and a breakout of 1.2549 (10-day sma) would expose 1.2613 (21-day sma) and finally 1.2738 (23.6% Fibo of the 2017 drop). On the other hand, the immediate support emerges at 1.2438 (low Aug.29) seconded by 1.2412 (2017 low Jul.27) and then 1.2124 (low Jun.18 2015).