USD/CAD challenging highs near 1.2920

The greenback is reclaiming some ground lost to its Canadian peer today, with USD/CAD testing the 1.2920 area, or daily highs.

USD/CAD firmer ahead of dat

The pair is posting gains for the first time after three consecutive pullbacks on Friday, as risk-appetite momentum seems to have taken a breather ahead of the opening bell in Europe.

Choppy week in crude oil prices but mainly a generalized bid tone in the risk-associated space lent CAD extra support and prompted spot to surrender gains from tops above the 1.3100 handle seen on Monday.

Next on tap will be US inflation figures tracked by the CPI, June’s Retail Sales and the advanced print of the Reuters/Michigan index. In Canada, May’s Manufacturing Sales are only due.

USD/CAD significant levels

As of writing the pair is advancing 0.19% at 1.2917 facing the next hurdle at 1.3139 (high Jul.11) ahead of 1.3191 (high May 24) and then 1.3312 (38.2% Fibo of the 2016 down move). On the other hand, a breach of 1.2858 (low Jul.14) would aim for 1.2827 (low Jul.4) and finally 1.2674 (low Jun.23).