USD/CAD: Upside capped below 5-DMA on higher Oil

The upbeat momentum seen in the USD/CAD pair faded a bit last hours, as the CAD bulls continued to find support from higher oil prices.

USD/CAD recedes to 1.2950

Currently, the USD/CAD pair trades +0.27% higher at 1.2957, hovering close to fresh session lows of 1.2950 struck some minutes ago. The bulls took a breather after yesterday’s rebound and consolidates within the familiar trading range below 5-DMA at 1.2988, as the gains remain capped on the back of recovery in the oil prices, which keeps the bids for the Loonie underpinned.

Both crude benchmarks are up almost +0.60% so far this session, having booked 3% loss a day before on the back of correction, following a two-day recovery earlier this week.

Moreover, the demand for the Canadian dollar resurfaced as Europe gets under way and hence, traders react to a stronger GDP numbers out of Canada released yesterday.

With the Canadian markets closed today, focus remains on the US manufacturing sector activity reports due later this Friday.

USD/CAD Technical Levels

To the upside, the next resistances are seen near 1.3000 (psychological levels) and 1.3043/50 (Jun 29 High). To the downside, immediate support might be located at 1.2931 (Jun 29 low) and below that at 1.2891 (20-DMA).