USD/CAD sticks to gains near 1.3130

After clinching session tops around 1.3150 during early trade, USD/CAD has run out steam and has now receded to the 1.3130 area.

USD/CAD focus on oil, data

The pair has fully faded the December upside, shedding around 5 cents since tops near 1.3600 the figure (December 28) and so far keeping the trade above the 1.3100 handle.

The unwinding of the Trump-led rally in the greenback plus renewed strength in crude oil prices following developments after the OPEC-non OPEC deal to limit the output has lent support to CAD, collaborating with the downside.

Looking ahead, the BoC interest rate decision on Wednesday, Trump’s inauguration on Friday and Fedspeak throughout the week should keep investors entertained. In addition, the usual reports on crude stockpiles by the API and the EIA will also be closely followed.

As shown by the latest CFTC report, speculators kept building its CAD net shorts positions during the week ended on January 10, reaching 3-week tops.

USD/CAD significant levels

As of writing the pair is advancing 0.15% at 1.3135 and a breakout of 1.3103 (200-day sma) would aim for 1.3028 (low Jan.12) and finally 1.3002 (low Oct.19). On the flip side, the initial hurdle lines up at 1.3188 (high Jan.12) followed by 1.3276 (100-day sma) and then 1.3311 (38.2% Fibo of the 2016 drop).