USD/CAD drops further, closer to 1.2900

Canadian dollar is gathering further traction vs. its American peer today, sending USD/CAD to the area of session lows around 1.2900 the figure.

USD/CAD in multi-day lows

Spot is extending its correction lower after being rejected from recent highs above the 1.13100 handle on increasing USD weakness and some recovery in crude oil prices, despite yesterday’s build-up in crude inventories.

Ahead in the session, US Initial Claims and Producer Prices are due along with speeches by FOMC’s Lockhart (neutral, non-voter) and George (hawk, voter). In Canada, New Housing Price Index is expected to have risen 0.2% MoM in May.

USD/CAD significant levels

As of writing the pair is retreating 0.49% at 1.2913 facing the next support at 1.2827 (low Jul.4) ahead of 1.2759 (base of the 2-month rising channel off 2016 low) and finally 1.2674 (low Jun.23). On the other hand, a break above 1.3139 (high Jul.11) would aim for 1.3191 (high May 24) and then 1.3312 (38.2% Fibo of the 2016 down move).