USD/CAD in red, manages to keep 1.33 and above

The now softer tone in the greenback is prompting USD/CAD to recede from recent tops and navigate the 1.3340/30 band for the time being.

USD/ CAD attention to oil, US data

After reaching fresh multi-month peaks just below the 1.3400 handle on Monday, the pair has sparked a correction lower as the upside momentum in the buck seems to have eased somewhat.

However, dips appear shallow as crude oil prices are extending the bearish note so far this week. In fact, ] the barrel of West Texas Intermediate is shedding over 1% to trade in session lows in the vicinity of $49.30 following yesterday’s build up in US oil supplies of nearly 5 million barrels, according to the API’s report.

Ahead in the session, the US DoE’s weekly report on crude oil inventories is due, along with Services PMI, New Home Sales and Goods Trade Balance. Nothing expected in Canada data wise, leaving all the attention to USD/oil-dynamics.

USD/CAD significant levels

As of writing the pair is losing 0.08% at 1.3340 with the next support at 1.3210 (20-day sma) ahead of 1.3142 (200-day sma) and then 1.3002 (low Oct.19). On the flip side, a breakout of 1.3398 (high Oct.24) would open the door to 1.3575 (50% Fibo of the 2016 drop) and finally 1.3839 (61.8% Fibo of the 2016 drop).