USD/CAD aims to regain above 200-day SMA status as WTI weakness lure buyers

• Greenback recovered the latest losses amid risk-on.
• Canadian housing data may offer intermediate moves to follow.

Despite opening beneath 200-day SMA for the first time since 15-week, the USD/CAD pair quickly recovered losses to confront the resistance as it takes the rounds near 1.3275 during early Monday.

The quote plummeted to late-March lows on Friday after Canada’s upbeat employment data contrasted with the sluggish job numbers from the US. Also increasing the momentum was an uptick in crude price, the nation’s largest export item.

Global markets favored the US Dollar (USD) at the week’s start as weekend reports confirming no tariffs on Mexico and likely break of the US-China trade talk impasse triggered market risk-on.

Additionally, crude also failed to extend the latest recovery amid mixed clues concerning future demand and likely increasing supply.

Investors may now look forward to Canadian housing market data and the US JOLTS jobs report for fresh impulse in addition to following trade news. Canada’s May month housing starts could weaken to 196.4K versus 235.5K prior while April month building permits may soften to 0.5% growth against 2.1% earlier. On the other hand, the US employment gauge might also follow recent jobs data with likely 7.240 million mark against 7.488 million.

Technical Analysis

A successful break of 1.3270 opens the gate for the pair’s rally to 1.3310 and then to 100-day simple moving average (SMA) level of 1.3350 whereas 1.3240 and 1.3170 may please sellers during the decline.