USD/CAD up & down it goes, around 1.2900

Increased volatility in crude oil prices is echoing in erratic moves by USD/CAD, which is now re-testing the boundaries of 1.2900 the figure.

USD/CAD choppy on oil, API eyed

CAD is surrendering part of the earlier spike to the 1.2860 area vs. its American neighbour as crude oil prices are deflating from daily highs after Iranian officials have not confirmed its attendance to the OPEC meeting in September.

In the meantime, prices for the West Texas Intermediate have returned to the $47.80 area after climbing to daily highs in the mid-$48.00s on rumours that Iran could take actions in order to support a stabilization of the oil market.

Ahead in the session, the weekly API report on crude stockpiles is due ahead of the EIA’s report on Wednesday and Friday’s US oil rig count by driller Baker Hughes.

USD/CAD significant levels

As of writing the pair is retreating 0.40% at 1.2895 facing the next support at 1.2860 (low Aug.23) followed by 1.2759 (low Aug.18) and finally 1.2674 (low Jun.23). On the flip side, a breakout of 1.2966 (high Aug.22) would aim for 1.2998 (20-day sma) and then 1.3202 (high Aug.5).