USD/CAD off lows, but remains capped below 1.3200

The USD/CAD pair attempts a minor-recovery from the mid-point of 1.31 handle, although remains capped below 1.32 handle, despite broad based US dollar strength.

USD/CAD buoyed by Oil weakness                

Currently, the USD/CAD pair trades +0.17% higher at 1.3180, having hit fresh session highs at 1.3184 last minutes. Having found solid bids just ahead of 1.3150 levels, the USD/CAD extends its struggle to take on the recovery above 1.32 handle, as the Loonie pares losses amid stalled selling in the oil prices. Both crude benchmarks now lose -0.65% versus a drop of -0.90% seen previously.

The USD/CAD pair, however, remains underpinned on the back of persistent broad based US dollar buying, with the USD index now gaining -+0.14% to 96.43, inching closer towards weekly tops printed at 96.50.

Markets now look forward to the Canadian housing starts as well as a fresh batch of US economic news for further momentum. While the US API crude stockpiles report will also have a major impact on the resource-linked Loonie.

USD/CAD Technical Levels

To the upside, the next resistances are seen near 1.3192/1.3200 (Aug 8 high/ round figure) and 1.3288 (200-DMA). To the downside, immediate support might be located at 1.3141 (5-DMA) and below that at 1.3109 (10-DMA).