USD/CAD edges lower on oil recovery, tests 1.3030

The Canadian dollar continues to appreciate vs. its American peer on Thursday, now dragging USD/CAD to the area of 1.3030, or daily lows.

USD/CAD extends its weekly decline

The pair has resumed its bearish trend so far today, retreating since Monday and shedding nearly 2 cents since tops in the 1.3200 neighbourhood.

The softer tone during the first half of the week has collaborated with the downside, while today’s recovery of crude oil prices is adding to CAD upside momentum. In fact, the West Texas Intermediate has trimmed earlier losses and is now testing the $42.00 mark per barrel, gaining smalls.

Data wise, US Initial Claims have practically matched estimates during last week, while Export/Import Prices have surprise markets to the upside. In Canada, New Housing Price Index rose 0.1% on a monthly basis in June.

USD/CAD significant levels

As of writing the pair is losing 0.15% at 1.3039 facing the next support at 1.2987 (low Aug.10) ahead of 1.2946 (100-day sma) and finally 1.2891 (base of the 3-month rising channel). On the upside, a break above 1.3202 (high Aug.5) would aim for 1.3253 (high Jul.27) and then 1.3313 (200-day sma).