USD/CAD: Rebound capped by 5-DMA, despite weaker Oil

The USD/CAD pair staged solid comeback on Tuesday, having reversed more-than half the previous slide on the back of a broadly firmer US dollar.

USD/CAD awaits US LMCI and Canadian housing data

Currently, the USD/CAD pair rises +0.36% to 1.3222, having faced rejection at 1.3232, where 5-DMA intersects. The major is seen receding a part of today’s rebound as markets resort to profit-taking after the bulls ran into resistance located at 5-DMA.

However, the major manages to keep 1.32 handle as weaker oil prices and persisting broad based US dollar strength continue to underpin the sentiment. Later today, the major will get influenced by the Canadian housing starts and US LMCI data due later in the NA session.

USD/CAD Technical Levels

To the upside, the next resistances are seen near 1.3282 (Sept high) and 1.3300 (round figure) and from there to 1.3350 (psychological levels). To the downside, immediate support might be located at 1.3170 (20-DMA) and below that at 1.3114 (daily S1) and at 1.3065 (50-DMA).