USD/CAD pauses 5-day sell-off, ignores higher Oil

A fresh bout of profit-taking is driving the USD/CAD higher towards 1.30 handle this Monday, with the bulls finally offered some respite after the recent sell-off.

USD/CAD extending beyond 100-DMA at 1.2944  

Currently, the USD/CAD pair rises +0.15% to 1.2971, hovering close to fresh session highs posted previously at 1.2976. The bulls breathed a sigh of relief after the USD/CAD pair managed to close last week above 100-DMA, and hence, now fuel a minor-recovery in the major, despite increasing bids seen around the oil prices. Both crude benchmarks trade nearly 1% higher amid chatter over potential production freezes by OPEC gaining more ground.

The USD/CAD pair stalled its five-day massive declines at the start of a brand new week, as markets resorted to profit-taking ahead a data-heavy macro calendar ahead. Meanwhile, oil prices edge higher today on the back of output freeze talks by the producers expected next month.

Further, a broadly higher greenback also lends support to the ongoing recovery in the major. Focus now remains on the US data due later in the NA session for further incentives on the CAD pair.

USD/CAD Technical Levels

To the upside, the next resistances are seen near 1.3000 (round figure) and 1.3057 (10-DMA). To the downside, immediate support might be located at 1.2944 (100-DMA) and below that at 1.2900.