USD/CAD eases off highs, below 1.3280 ahead of US data

The greenback is slightly firmer vs. its Canadian neighbor on Tuesday, taking USD/CAD to the 1.3270/80 band early in the European session.

USD/CAD focus on US data

The pair is retreating for the second consecutive week so far, extending the break below the key support at the 1.3300 handle although recovering some ground after the negative start on Monday.

The strong rebound in crude oil prices has given extra oxygen to CAD in past sessions, while the renewed weakness surrounding the buck has been also collaborating with the downside,

In fact, the West Texas Intermediate has posted fresh 2016 highs above the $52.00 mark per barrel on Monday, prolonging the upbeat momentum since the OPEC clinched a deal to limit the oil output on November 30.

In the meantime CAD remains under pressure from the positioning side, as speculative net shorts remained in the area of 3-week lows during the week ended on November 29, as shown by the latest CFTC report.

USD/CAD significant levels

As of writing the pair is up 0.02% at 1.3272 and a breach of 1.3231 (low Dec.5) would open the door to 1.3194 (100-day sma) and finally 1.3066 (200-day sma).  On the other hand, the next hurdle aligns at 1.3316 (55-day sma) followed by 1.3357 (high Dec.5) and then 1.3430 (20-day sma).