• CAD - Best performer amongst commodity currencies
• BOC- No change expected
• Faces stiff resistances near daily classic R1

The selling pressure behind the Canadian dollar remains intact in the European session, with USD/CAD now printing two-week highs near 1.2670 region.

USD/CAD higher on renewed oil-price weakness

The latest leg lower in the oil-linked Loonie can be mainly attributed to fresh selling seen in oil prices, as investors turn cautious heading into the weekly US crude inventory report due to be published by API later today.

Moreover, the USD bulls regained poise last hour, allowing the greenback to resume the bounce across its main competitors ahead of the US flash manufacturing PMI report, which is expected to show a stronger reading for October.

Meanwhile, renewed upside in Treasury yields combined with expectations of the BOC to remain on hold tomorrow, also adds to the bullish momentum seen around USD/CAD so far this Tuesday.

USD/CAD Technical View

RoboForex Team offers key technical levels: “The USD/CAD pair is trading at 1.2632; the instrument is still moving above Ichimoku Cloud, which means that it may continue growing. We should expect the price to test Tenkan-Sen and Kijun-Sen at 1.2600 and then continue moving upwards to reach 1.2725. However, the scenario that implies further growth may be cancelled if the price breaks the downside border of the cloud and fixes below 1.2520. In this case, the pair may continue falling towards 1.2350.”