USD/CAD back on the bids near 1.3720 as Oil recovery fizzles

The Canadian dollar stalled its recovery mode against the US dollar post-Tokyo open, lifting USD/CAD from a dip to 1.3700 levels.

The bulls regained control in Asia, after having witnessed a minor-correction overnight from 14-month tops, as the USD demand appears to have returned to markets. The USD index is seen consolidating the downside near 98.80 levels over the last hours.

Moreover, the Loonie came under renewed selling pressure this session, as the overnight oil-price recovery stalled, with WTI now clinging to $ 48 mark. Oil prices rebounded on both sides of the Atlantic, in response to a bullish API crude stockpiles report released late-Tuesday.

Markets now await the US private sector jobs report and FOMC decision to rescue the USD bulls, sending the major back to 1.3760 levels, fresh 2017 tops.

USD/CAD Technical levels                

The next resistance can be seen at 1.3759 (multi-month tops), 1.3800 (zero figure) and 1.3876 (Weekly Classic R2). Next support to the downside can be found at 1.3680 (5-DMA), 1.3651 (Daily Classic S1) and 1.3621 (10-DMA).