USD/CAD off lows, near 1.3240

FXStreet (Mumbai) - The Canadian dollar erased partial losses versus its American counterpart in the mid-European session, now pushing USD/CAD towards session lows near 1.32 handle.

USD/CAD failed to extend beyond 1.3270

Currently, the USD/CAD pair trades 0.25% higher at 1.3233, miring near session lows at 1.3227. The Canadian dollar halted its recent correction higher against its American rival and fell back into losses as the US oil paused its last week’s rally and resumed its broader downtrend as China worries and ongoing supply glut continue to weigh.

At the moment, Brent crude drops more than 2% to below $49 per barrel, while WTI futures fell nearly 2% to almost $44.50.

Moreover, exerting additional pressure on USD/CAD, the US dollar extended to the downside on Monday, largely a corrective slide after last week’s heavy gains. The US dollar index, the virtual gauge of greenback’s relative strength, now trades 0.13% lower at 96.01.

Traders will be watching for the release of Canadian current account data and Chicago PMI from the US due later in the NA session for further momentum.

USD/CAD Technical Levels

To the upside, the next resistance is located at 1.3307 (Aug 27 High) levels and above which it could extend gains to 1.3350 (Aug 26 High). To the downside, immediate support might be located at 1.3212 (Today’s Low) levels and below that at 1.3163 (Aug 28 Low).