USD/CAD tracks subdued oil price move, holding above 1.2900

The USD/CAD pair is witnessing a subdued trading session near 1.2910 on Wednesday as crude-oil prices fell on reports of growing surplus as Canadian wildfire threat eases.

Overnight, oil prices rallied as EIA increased estimate for global demand in its outlook report released on Tuesday. EIA is scheduled to release its weekly inventories data later during NA session.

As the correlation between the USD/CAD pair and crude oil prices remains high, any signs of renewed weakness in crude oil prices might be enough to lift the pair back towards 1.3000 important handle.

Technical levels to watch

Weakness below 1.2900 round figure mark is likely to get extended towards 1.2850-45 descending trend-channel resistance break-point turned support. A follow through selling pressure could drag the pair back towards retesting an important support near 1.2820-1.2800 area.

Alternatively, a renewed buying interest could lift the pair back towards 1.3000 important psychological mark, which if conquered decisively should assist the pair to extend its near-term recovery trend towards its next major resistance near 1.3135-40 area (April daily closing high resistance).