USD/CAD: offers held up ahead at S2

Currently, USD/CAD is trading at 1.3091, down -0.03% on the day, having posted a daily high at 1.3121 and low at 1.3073.

USD/CAD is stabilising after a drop below the 1.31 handle from aforementioned highs in an otherwise quiet start to the week with the holidays in North America. Recently, the price has been driven by oil that has been delivering support and completely offsetting the drag from relative central bank policy, as noted by analysts at Scotiabank, adding, "We note the renewed softening in market-based expectations for BoC policy. Measures of implied CAD volatility are showing early signs of stabilisation, with risk reversals pricing a relatively small premium for protection against CAD weakness."

USD/CAD levels

The 200 d sma is located at 1.3214 where it meets the 50 sma on the same time frame crossing below while the descending resistance comes in at the same level and potentially offers a tough level to break on a correction of1.3597 downtrend. Support at 1.3020 guards  18th Feb low of 1.3068 ahead of psychological and previous support at 1.3000.