USD/CAD bounces-off 0.2900, despite higher Oil

Fresh bids emerged for the USD/CAD pair at 0.2900 levels, driving the recovery from the sell-off witnessed overnight after the greenback tumbled across the board.

USD/CAD eyes daily highs above 1.2960

Currently, the USD/CAD pair trades -0.21% lower at 0.2938, extending recovery from daily lows struck at 1.2899 in early trading. The USD/CAD pair halted its retreat from nine-day highs and embarked upon a minor-recovery mode heading into Europe, as the US dollar picked-up bids and trims losses against its major peers. The USD index now drops -0.19% t0 94.58, moving off 94.47 lows.

Moreover, the Loonie remains unperturbed by the strengthening oil prices and pares gain, as focus now turns towards the Canadian inflation numbers due later in the NA session. The Canadian May CPI is estimated to have declined to 1.6% from 1.7% on an annual basis, while the core CPI is predicted to have eased to 2.1% from 2.2% over the past year. Besides US macro releases will be also closely eyed for fresh take on the USD moves.

USD/CAD Technical Levels

To the upside, the next resistances are seen near 1.2964/67 (daily pivot & high) and 1.3000 (psychological levels). To the downside, immediate support might be located at 1.2899/93 (daily low/ 5-DMA) and below that at 1.2872 (50-DMA).