USD/CAD supported around 1.3580

 

After reaching daily highs above 1.3640 during early trade, USD/CAD has now returned to the 1.3600 area, giving away the initial gains.

USD/CAD supported around 1.3580

Spot is struggling to advance after two consecutive sessions with losses so far today, dragged lower by the prevailing offered bias around the greenback and the rally in crude oil prices, which has been lending support to CAD since 2017 tops seen in early May.

The barrel of West Texas Intermediate keeps the weekly bullish note for the time being, although retreating from recent tops above the $49.00 mark while traders are waiting for the weekly report on US crude oil inventories by the EIA.

In addition, yields in the US money markets are falling further today, narrowing the gap vs. their Canadian peer and thus limiting the upside.

In the data space, Canadian Manufacturing Shipment expanded 1.0% MoM in March, reverting February’s 0.2% contraction.

USD/CAD significant levels

As of writing the pair is losing 0.01% at 1.3606 and a break below 1.3579 (low May 17) would open the door to 1.3575 (23.6% Fibo of the Apri-May rally) and finally 1.3528 (low Apr.25). On the flip side, the next up barrier is located at 1.3743 (high May 12) seconded by 1.3772 (high May 11) and then 1.3795 (2017 high May 5).

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