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USD/CAD eases-off highs, near 1.3060

FXStreet (Mumbai) - After bottoming out near 1.29 handle on Monday, the USD/CAD pair staged a solid-comeback and leaps beyond 1.3050 levels on Tuesday, with the oil prices emerging the main catalyst behind the move.

USD/CAD rises to a three-day high

Currently, the USD/CAD pair trades 0.48% higher at 1.3060, hovering close to fresh session highs posted at 1.3067. The Canadian dollar keeps losing ground versus the US dollar on the back of renewed weakness in oil prices following the IEA supply forecasts.

The US oil, WTI, wiped out gains and trades muted at $ 47.10 while its European counterpart, Brent pared gains to trade at $ 50.42. Oil prices halted its rebound and edged lower after the IEA monthly report on oil stated that the agency sees oversupply extending into 2016 while predicting slowing global demand next year.

Later in the day, there is nothing relevant in terms of economic news on the cards and hence, the broader market sentiment and oil price movement will dictate further moves.

USD/CAD Technical Levels

To the upside, the next resistance is located at 1.3075 (Oct 7 & 8 High) levels and above which it could extend gains to 1.3100 (round number). To the downside, immediate support might be located at 1.3022 (Hourly 20-SMA) levels and below that at 1.2897/99 (Oct 9 & Oct 12 Low).

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