USD/CAD extends recovery from 3-week lows after EIA data

USD/CAD edged a tad higher, after wavering for a while alongside with oil prices, following the release of EIA report on US crude inventories.

EIA report showed US crude oil inventories rose by 1055K in the week ended Aug 5, against -100K expected, but less than that reported by the API yesterday. Therefore, the initial effect on WTI was positive, helping the CAD, but both turned lower afterwards.

USD/CAD retreated to the 1.3015 zone before bouncing to a fresh session high of 1.3058. At time of writing, USD/CAD was trading at 1.3152, still 0.5% down on the day. The pair had set a 3-week low of 1.2989 earlier on the day, amid broad USD weakness.

USD/CAD levels to consider

As for technical levels, next supports are seen at 1.2989 (Aug 10 low), 1.2946 (100-day SMA) and 1.2900 (psychological level). On the other hand, immediate resistances line up at 1.3097/1.3100 (10-day SMA/psychological level), 1.3199 (Aug 5 high) and 1.3252 (Jul 27 high).