USD/CAD struggles to recover ground above 1.3050

The bears extend their control for the third consecutive session this Wednesday, with the USD/CAD pair lock-stepping in the move lower seen in the greenback against its six major competitors.

USD/CAD tracks USD lower                            

Currently, the USD/CAD pair drops -0.42% to 1.3064, recovering from session lows reached at 1.3052 earlier on the day. The major faced heavy selling pressure above 20-DMA at 1.3114, and dived nearly 70-pips thereon in Asia, before recovering some ground as we head into the early European morning.

The USD/CAD pair was mainly sold-off into broad based USD sell-off, with the USD index now hovering near fresh three-day lows of 95.63, recording a -0.40% loss on the day. Moreover, subdued trading activity seen around the oil prices fails to provide any support to the Loonie, and hence, further collaborates to the downside in the CAD pair.

Markets now eagerly await the US crude stockpiles report and any clarification on talks of  interim OPEC meeting in September in a bid to gauge further oil-price action, which will eventually impact USD/CAD.

USD/CAD Technical Levels

To the upside, the next resistances are seen near 1.3119 (daily high) and 1.3137 (5-DMA). To the downside, immediate support might be located at 1.3012 (50-DMA) and below that at 1.2935 (100-DMA).