USD/CAD retreats from highs, back below 1.3200

The greenback is posting marginal gains vs. its Canadian neighbor at the end of the week, sending USD/CAD to the 1.3200 neighbourhood ahead of the European open.

USD/CAD attention to oil, data

After dropping to the area of 1.3180 on Thursday, spot has managed to retake the 1.3200 handle and beyond during the Asian trading hours, although the upside momentum lost vigour in the 1.3210/15 band, correcting to current levels afterwards.

In the meantime, the pair remains in the area of 2-month lows, retreating for the second week in a row and shedding around 4 cents since November tops in the boundaries of the 1.3600 handle, all backed by a renewed strength in CAD in response to the recent rally in crude oil prices.

Later in the NA session, the flash print of the Reuters/Michigan index is expected to tick higher to 94.5 for the current month, adding to the USD solid momentum.

USD/CAD significant levels

As of writing the pair is gaining 0.09% at 1.3198 and a break above 1.3311 (38.2% Fibo of the 2016 drop) would open the door to 1.3318 (55-day sma) and then 1.3357 (high Dec.5). On the downside, the immediate support aligns at 1.3180 (low Dec.8) followed by 1.3065 (200-day sma) and finally 1.3002 (low Oct.19).