USD/CAD extends the drop below 1.2800

The Canadian dollar has accelerated its gains vs. its American peer on Tuesday, now dragging USD/CAD to fresh lows in the 1.2770 area.

USD/CAD focus on CAD data, API

The pair is retreating for the second consecutive session so far, coming down from last week’s tops in the vicinity of the 1.3200 handle as the sentiment around the greenback continues to deflate.

Furthermore, CAD is deriving extra support from the upbeat tone in crude oil prices, with the barrel of WTI hovering over the psychological $50.00 mark and trading at shouting distance from YTD tops in the $50.

In the data space, Canadian PMI measured by Ivey is due later ahead of the weekly report on US crude stockpiles by the API.

USD/CAD significant levels

As of writing the pair is down 0.25% at 1.2784 facing the next support at 1.2761 (low Jun.7) followed by 1.2590 (low Apr.20) and finally 1.2458 (2016 low May 3). On the flip side, a breakout of 1.2916 (20-day sma) would aim for 1.2996 (55-day sma) and then 1.3145 (high May 30).