USD/CAD retreats from highs, back to 1.3030

After testing the area of 1.3080 in overnight trading, USD/CAD has now returned to the 1.3030 region.

USD/CAD boosted by USD-buying, oil

The pair is now losing some upside momentum as the buying pressure around the buck seems to have eased somehow, coming down to visit the 1.3030 area after failing near 1.3100 the figure in early trade.

Furthermore, crude oil prices have recovered from the early drop and are now advancing into the positive territory, lending some support to the Canadian dollar.

In the meantime, the recent ‘Brexit’ vote remains the exclusive driver for the global sentiment, keeping USD bid and the risk-associated space under extra pressure.

Data wise in the US docket, advanced Markit’s Services PMI for the current month is due later.

USD/CAD significant levels

As of writing the pair is up 0.18% at 1.3030 facing the initial hurdle at 1.3145 (high Jun.2) ahead of 1.3191 (high May 24) and finally 1.3326 (200-day sma). On the other hand, a breach of 1.2986 (23.6% Fibo of 2016 down move) would expose 1.2882 (20-day sma) and then 1.2863 (55-day sma).