USD/CAD remains under pressure near 8-week lows

USD/CAD fell briefly below the 1.28 mark and hit its lowest level since June as the greenback weakened across the board, however, it managed to recover some ground on the back of US CPI data and hawkish comments from Dudley.

USD/CAD bounced from a low of 1.2798 and climbed all the way back to the 1.2890 zone before the recovery lost steam. The pair has moved off session highs and it was last trading at the 1.2850 area, 0.55% below its opening price.

Higher oil prices have also supported the loonie, with WTI reaching $46.50 a barrel, for first time in five weeks.

USD/CAD levels to watch

At time of writing, USD/CAD is trading at 1.2856, recording a 0.51% loss on the day, with immediate supports seen at 1.2798 (Aug 16 low) and 1.2710 (Jun 24 low). On the other hand, immediate resistances line up at 1.2936 (100-day SMA), 1.2981 (50-day SMA), 1.3030 (10-day SMA) and 1.3079 (Aug 11 high).