USD/CAD flat lined in Asia amid oil rally

Uptick on oil prices in Asia is not helping CAD, leaving the USD/CAD pair largely unchanged on the day around 1.3062 levels.

Offered at 1.3148

Oil price rally in the NY session on the back of a drop in gasoline inventory strengthened the offered tone around USD/CAD at 1.3148 levels. Consequently, the pair ended on a weaker note at 1.3064 levels. Losses were extended further to 1.3038 levels in Asia before recovering to 1.3062 levels.

The pair remains at the mercy of the oil market sentiment ahead of the weekly US initial jobless claims release. This will be followed by US factory orders and final durable goods orders release.

USD/CAD Technical Levels

The immediate resistance is noted at 1.3080 (5-DMA), above which the spot may target 1.3126 (10-DMA). A violation there could yield 1.3254 (July 27 high). On the other hand, a breakdown of support at 1.2987 (23.6% of 1.4690-1.2461) would expose support at 1.2945 (100-DMA) and 1.29 levels.