USD/CAD clings to gains above 1.2900

USD/CAD extended its recovery from Thursday’s lows, briefly rising above the 100-day SMA, to reach a fresh 1-week high during the European session.

The greenback strengthened at the weekly opening and climbed to a peak of 1.2935 against the Canadian dollar before settling in a range nearby, as investors refrain from taking big positions ahead of the Jackson Hole Symposium. At time of writing, USD/CAD is trading at 1.2915, still up 0.41% on the day.

On the data front, Canada’s wholesale sales rose for a third consecutive month, up 0.7% in June versus a 0.1% increase expected. In the US, the Chicago Fed National Activity Index climbed to 0.27 in July from a revised 0.05 in June.

USD/CAD levels to watch

On the upside, next resistances line up at 1.2930/35 (100-day SMA/Aug 22 high), 1.2989 (50-day SMA) and then 1.3025 (20-day SMA). On the flip side, supports are seen at 1.2870 (Aug 22 low), 1.2800 (psychological level) and 1.2763 (Aug 19 low).