USD/CAD up for the day but unable to extend gains above 1.3300

• Loonie corrects lower, remains limited by lower crude oil prices and risk aversion.
• USD/CAD holds far from last week highs, consolidating near 1.3300.

The USD/CAD pair is rising modestly on Monday, after making an important reversal on Friday. As of writing, it was hovering slightly below 1.3300. The intraday bias pointed to the upside but it remained unable to make a sustainable run above 1.3300.

While the US dollar is showing weakens in the market, risk aversion and lower crude oil prices limited any correction in USD/CAD. WTI Futures are falling after a sharp rally on Friday. The barrel was down 0.50%. In Wall Street, the Dow Jones hit monthly lows and it was down 1.40%.

Regarding economic data, today’s US housing numbers have no impact on the greenback. The next relevant report in the is due on Thursday with another reading of Q1 GDP. In Canada, April GDP data will attract the most attention and a positive contribution is expected from the mining sector but it should be largely offset by a poor showing in the manufacturing sector, explained analysts at NBF.

USD/CAD Short-term Technical Levels

To the downside, support levels might be located at 1.3295 (uptrend line), 1.3260/65 (Jun 22 & 25 low) and 1.3235/40 (Jun 18 high). On the upside, resistance might be seen at 1.3320/25 (daily high), followed by 1.3350 and 1.3380 (last week high).