The USDCAD pair maintained its offered tone through mid-European session and is currently placed at session lows, below mid-1.2100s.
The pair latest leg of decline over the past hour or so could be solely attributed to a modest pickup in crude oil prices, which was seen boosting demand for the commodity-linked currency – Loonie and weighing on the major.
Oil prices gained some positive traction after the latest IEA Oil Market Report revealed that global oil demand growth forecast for 2017 was revised to 1.6 mb/d.
Against the backdrop of a subdued US Dollar price action, oil price dynamics has been an exclusive driver of the pair’s movement on Wednesday.
• US Dollar weaker, flirting with lows near 91.70
Next in focus would be the US PPI print for August, followed by EIA’s weekly crude oil inventories data, which would be looked upon for the pair’s trajectory through NY trading session.
Technical levels to watch
Immediate support is pegged near the 1.2110-1.2100 region, below which the pair could drop back to multi-month lows support near 1.2060 level before eventually aiming to test the key 1.20 psychological mark.
On the upside, 1.2180 level, closely followed by the 1.2200 handle, now seems to have emerged as immediate resistance areas, which if cleared decisively might trigger a short-covering bounce towards mid-1.2200s.Follow us to get the latest updates