USD/CAD: Bears back in control, 1.2900 eyed

The USD/CAD pair halted its 2-day rebound and fell back in the red this Tuesday on minor- profit-taking, despite weaker oil prices.

USD/CAD off 5-day highs, but above 1.2900

Currently, the USD/CAD pair slips -0.15% to fresh session low of 1.2925, extending the downside from five-day tops reached yesterday at 1.2966. The US dollar extends its corrective slide versus the Canadian dollar in mid-Asia, knocking-off USD/CAD closer towards 1.29 handle. Meanwhile, the US dollar index eases -0.08% to 94.44, meandering close to session lows struck at 94.40 levels.

However, the downside looks limited amid ongoing weakness in the oil prices, which continues to weigh on the resource-linked Loonie. The omnipresent supply glut concerns continue to keep the black gold under pressure.

Meanwhile, markets moved past upbeat Canadian wholesales sales data, as focus shifts towards the US macro updates due later today.

USD/CAD Technical Levels

To the upside, the next resistances are seen near 1.2950/60 (psychological levels/ 100-DMA) and 1.3000 (round figure). To the downside, immediate support might be located at 1.2883 (5-DMA) and below that at 1.2827 (Aug 17 low).