USD/CAD challenges lows near 1.2940

The softer note around the greenback is sending USD/CAD to test the lower end of the range in the 1.2945/40 band.

USD/CAD lower on USD, oil

The pair is retreating for the sixth session in a row so far today, following an offered bias around the greenback and a recovery in crude oil prices.

In fact, CAD is deriving extra support as the barrel of West Texas Intermediate is nearing the key $45.00 mark, advancing for the third consecutive session.

Ahead in the session, the NY Empire State manufacturing index is due, seconded by the NAHB index and TIC Flows, while Canadian Manufacturing Sales is expected tomorrow.

USD/CAD significant levels

As of writing the pair is retreating 0.10% at 1.2939 and a break below 1.2927 (low Aug.12) would aim for 1.2912 (base of the 3-month rising channel) and finally 1.2857 (low Jul.15). On the upside, the initial hurdle aligns at 1.2981 (55-day sma) followed by 1.3085 (20-day sma) and then 1.3202 (high Aug.5).