USD/CAD sidelined around 1.2830 ahead of US data

• CAD is slightly appreciating vs. its American peer on Monday.
• Pair’s upside appears capped at 1.2865/70 band.
• US New Home Sales and Consumer Confidence next of relevance.

After hitting fresh tops above 1.2860 at the beginning of the week, USD/CAD is now correcting lower to the 1.2830 region ahead of the opening bell in Wall St.

USD/CAD looks to data

The pair is so far reverting a 4-day positive streak, meeting tough resistance in the 1.2860 region, or fresh 3-week peaks.

The rally in the greenback has been on the back of solid performance from yields in the US money markets, with the key 10-year note approaching the critical 3.0% mark, albeit losing some momentum afterwards.

On the CAD side, the recent cautious tone from the Bank of Canada and subsequent comments by Governor M.Carney in the same direction seem to have poured some cold water over increasing expectations of a rate hike in July, although markets in general and traders' sentiment appear reluctant to buy into this view.

Later in the NA session, US New Home Sales, the S&P/Case-Shiller Index AND Consumer Confidence measured by the Conference Board should keep the attention on the buck.

USD/CAD significant levels

As of writing the index is losing 0.12% at 1.2833 facing the immediate support at 1.2770 (55-day sma) followed by 1.2624 (200-day sma) and then 1.2525 (low Apr.17). On the other hand, a breakout of 1.2861 (high Apr.24) would aim for 1.2927 (38.2% Fibo of the 2017 drop) and finally 1.2946 (high Apr.2).