USD/CAD erases losses and climbs to session highs after EIA report

USD/CAD bounced from lows and reversed early losses as the loonie weakened on the back of a smaller-than-expected draw in US oil stock inventories.

The EIA inventories report showed oil inventories fell by -0.917 million barrels last week vs -1.9 million barrels decrease expected, pushing oil prices lower and USD/CAD the other way.

USD/CAD extended its recovery from 2-week lows in the 1.2740 area, regaining the 1.28 mark and reaching a fresh daily high of 1.2837 in recent dealings.

USD/CAD levels to watch

As for technical levels, next resistances are seen at 1.2842 (200-hour SMA), followed by 1.2860 (Jun 20 high) and 1.2894 (20-day SMA). On the flip side, supports are seen at 1.2741 (Jun 22 low), 1.2654 (Jun 8 low) and 1.2570 (100-day SMA).