USD/CAD struggles around 1.3200

After dropping to fresh 2-month lows in sub-13200 levels, USD/CAD has retaken the 1.3200 handle is now looking to gather some traction.

USD/CAD lower on oil gains

The pair met increasing selling pressure today in spite of the strong recovery of the greenback following the dovish message from the ECB meeting at its meeting earlier today.

The rebound of crude oil prices has pushed the barrel of West Texas Intermediate back above the critical $50.00 mark, lending extra legs to CAD and thus weighing on the pair’s downside.

On the data front, Canadian Building Permits rose above consensus 8.7% on a monthly basis in October, while Housing Starts dropped to 184.0K in November, missing estimates. In the US, Initial Claims matched forecasts at 258K WoW.

USD/CAD significant levels

As of writing the pair is losing 0.22% at 1.3207 and a breach of 1.3197 (low Dec.8) would open the door to 1.3194 (100-day sma) and finally 1.3065 (200-day sma). On the other hand, the next resistance lines up at 1.3311 (38.2% Fibo of the 2016 drop) followed by 1.3357 (high Dec.5) and then 1.3414 (20-day sma).