USD/CAD stuck at 23.6% Fibo as oil gains

Uptick in oil prices in Asia ensured the minor bullish move in the USD/CAD ran out of steam as prices neared 1.2987 (23.6% of 1.4690-1.2461) levels.

Hovers around 10-DMA

The pair currently trades around the daily 10-MA level of 1.2960 levels. Oil prices at both sides of the Atlantic after the American Petroleum Institute (API) data released overnight in the US showed a bigger drawdown in the weekly US inventories.

Consequently, the pair turned lower from the high of 1.2984 levels to trade around 1.2960. The spot failed to sustain above 100-DMA levels yesterday.

USD/CAD Technical Levels

The immediate resistance is noted at 1.2987 (23.6% of 1.4690-1.2461), above which the spot could target 1.3014 (100-DMA). A violation there could yield 1.3120 (June 27 high). On the other hand, a breakdown of support at 1.2910 (50-DMA) would open doors for a slide to 1.2865 (July 1 low) and 1.2831 (July 4 low).