USD/CAD falters ahead of 1.2900

USD/CAD rose sharply at the beginning of the American session, propelled by disappointing Canadian data (CPI and retail sales), although the advance faltered ahead of the 1.29 mark.

USD/CAD climbed to a daily peak of 1.2891 before settling in a range nearby. At time of writing, the pair was trading at 1.2877, recording a 0.77% gain on Friday, and having completely reversed previous two days losses.

USD/CAD levels to watch

On the upside, a break above 1.2900 could pave the way to 1.2931 (100-day SMA) and then 1.2988 (50-day SMA). On the flip side, supports are seen at 1.2763 (Aug 19 low), 1.2710 (Jun 24 low) and 1.2677 (Jun 23 low).