USD/CAD reverses a spike to 1.3225

The US dollar trims gains, although manages to keep 1.32 handle against its Canadian counterpart this Tuesday, after USD/CAD bounced-off a brief dip below the last.

USD/CAD deflates from highs

Currently, the USD/CAD pair trades +0.06% higher at 1.3211, retreating quickly from session tops reached at 1.3223. USD/CAD moved-off highs, but remains well bid amid weaker oil prices, which continue to dampen the sentient around the resource-linked Loonie.

The major fails to extend higher, as the US treasury yields trade mixed amid Fed uncertainty, offering little impetus to the US dollar. The USD index trades modestly flat at 95.72 levels.

All eyes remain on BOC Governor Poloz’ speech due later in the NA session, while and the FOMC statement due out on Wednesday remains the key driver for the major this week.

USD/CAD Technical Levels

To the upside, the next resistances are seen near 1.3243 (daily R1) and 1.3200 (multi-month highs). To the downside, immediate support might be located at 1.3149/45 (10 &200-DMA) and below that at 1.3095 (daily R2).