USD/CAD makes U-turn, takes back losses

USD/CAD rebounded from daily lows as markets made a U-turn mid-American session, with the US dollar taking back most of the losses incurred on the back of disappointing data.

USD/CAD turned higher after bottoming out at 1.2770 and climbed to the 1.2860 zone, moving inversely with oil prices which wiped out daily gains. At time of writing, USD/CAD is trading at 1.2840, just a few pips below its opening price.

USD/CAD technical levels

In terms of technical levels, next resistances are seen at 1.2878 (May 12 high), 1.2940 (May 11 high) and 1.2962 (50-day SMA). On the flip side, supports could be found at 1.2770 (May 12 low), 1.2737 (20-day SMA)and 1.2696 (May 4 low).