USD/CAD ends 4-day losing streak, rebounds above 1.2700

The US dollar staged a solid comeback versus its Canadian counterpart in the European session, driving USD/CAD sharply higher above 1.27 handle.

USD/CAD recovers from 0.2670 region

Currently, the USD/CAD pair trades +0.21% higher at fresh session highs of 1.2726, posing a solid rebound from five lows reached near 1.2650 levels. The USD/CAD pair finally brought an end to its 4-day losing streak and attempted a minor-recovery this session now, with the bulls back in charge now a retreat in the oil prices from fresh 2016 highs and a broad based US dollar rebound.

The US dollar index, which measures greenback’s relative strength against its six major peers, reversed losses to now trades +0.07% at 93.65. While both crude benchmarks wiped-out gains and turned negative as markets take profit off the table after the recent relentless rise.

Attention now turns towards the Bank of Canada (BO) Governor Stephen Poloz’ speech, as he takes part in the Financial System Review in Ottawa, later today. While the Canadian jobs report will remain in focus tomorrow.

USD/CAD Technical Levels

To the upside, the next resistances are seen near 1.2782/1.2800 (5-DMA/ round number) and 1.2858/67 (50-DMA). To the downside, immediate support might be located at 1.2671 (daily low) and below that at 1.2651 (five-week low).