USD/CAD surrenders gains as oil ticks higher

USD/CAD surrendered gains in Asia to trade largely unchanged on the day around 1.3020 as oil prices strengthened on hope of a drawdown in the US weekly inventories.

Offered at 1.3054

The pair turned lower from the high of 1.3054 after the drawdown in the US oil inventories as reported by American Petroleum Institute (API) helped oil prices advance in Asian session. Both benchmarks are trading at least 0.40% higher on the day.

Consequently, CAD found takers, although the gains in oil are modest as glut fears persist. The pair is thus hovering around 1.3020 levels.

USD/CAD Technical Levels

A break below daily low of 1.3015 would open doors for a drop to 1.2987 (23.6% of 1.4690-1.2461). A violation there could yield 1.2948 (50-DMA). On the other hand, a break above 1.3054 (yesterday’s high) would expose 1.31 (zero figure) and 1.3139 (July 11 high).