The USD/CAD pair, which spent the day under pressure, started to consolidate its daily losses in the NA session and is now moving horizontally near mid-1.29s. At the moment, the pair is trading at 1.2944, losing 0.09%, or 12 pips, on the day.
Since the start of the week, crude oil performance has been the primary driver of the pair’s price action as the commodity-linked loonie reacted to sharp fluctuations on changing oil market dynamics. After losing more than 4% on Wednesday, the barrel of West Texas Intermediate gained more than 2% on Thursday and reached its daily high at $46.50 following the EIA report that showed a massive crude oil inventory draw in the U.S. At the moment, the barrel of WTI is trading at $46.10, adding $1 on the day.
Moreover, today’s data from Canada also helped the loonie gather some extra momentum. However, ahead of tomorrow’s important unemployment reports from both Canada and the U.S., investors seem hesitant to take large positions.
On the other hand, the US Dollar Index is also moving in a tight range near its session low of 95.60, failing to provide a catalyst for the pair.
Technical levels to consider
1.2910 (10-month low/Tuesday low) is seen as a significant support ahead of 1.2820 (Sept. 7 low) and 1.2760 (Aug. 18 low). On the upside, resistances align at 1.2980 (daily high), 1.3020 (10-DMA) and 1.3135 (20-DMA).