USD/CAD firmer, approaches 1.3400

The better tone in the buck is now helping USD/CAD to advance to the vicinity of the 1.3400 handle.

USD/CAD focus on US elections

Spot is posting marginal losses ahead of the European opening bell although it continues to recover from overnight lows in the 1.3340 region.

Crude oil prices are strongly rebounding as well, lifting the barrel of West Texas Intermediate to the area of $44.70 and lending extra legs to CAD at the same time.

USD has found its buying interest renewed after the FBI said it will take no action against Democratic candidate H.Clinton over emails, prompting investors to re-position in the greenback.

In the meantime, the US political scenario will dominate the headlines in the near term as presidential election are due tomorrow and with consensus still divided on the potential outcome.

In addition, according to the latest CFTC report, CAD speculative net shorts have climbed to the highest level since late March during the week ended on November 1, while Open Interest clinched 6-week tops.

USD/CAD significant levels

As of writing the pair is losing 0.08% at 1.3392 facing the next up barrier at 1.3466 (high Nov.4) followed by 1.3575 (50% Fibo of the 2016 drop) and finally 1.3839 (61.8% Fibo of the 2016 drop). On the other hand, a break below 1.3303 (20-day sma) would aim for 1.3174 (55-day sma) and then 1.3002 (low Oct.19).