USD/CAD extends upside beyond 1.2900

The recovery in the USD/CAD pair from nine-straight sessions of losses gained further traction this session, heading further for a test of 1.2950 levels.

USD/CAD rises as Oil drops

Currently, the USD/CAD pair advances +0.40% to fresh session highs of 1.2924, resuming the upside from 1.2873 lows. The US dollar extends gains against its major peers, further boosting the upbeat momentum behind USD/CAD. The US dollar index jumps +0.44% to fresh daily tops of 94.92 levels.

Moreover, the strong gains seen in the USD/CAD pair is also backed by the oil-price weakness, after bearish US rigs count report triggered a fresh bout of profit-taking. Canada is highly dependent on oil prices for its revenues.

Amid thin markets, focus now remains on the oil-price action and Canadian wholesale sales, which will be reported in the NA session.

USD/CAD Technical Levels

To the upside, the next resistances are seen near 1.2950/56 (psychological levels/ 100-DMA) and 1.3000 (round figure). To the downside, immediate support might be located at 1.2862 (5-DMA) and below that at 1.2827 (Aug 17 low).