USD/CAD retreats from highs, still above 1.3400

After climbing to session tops near 1.3430 during overnight trade, USD/CAD has now receded to the area of 1.3415 ahead of the opening bell in Euroland.

USD/CAD attention to Yellen

The pair has recovered the upside momentum after Friday’s drop to the mid-1.3300s following the better-than-expected Canadian jobs report and the disappointing US Non-farm Payrolls.

In the meantime, US yields keeps rebounding from recent YTD lows and are now looking to consolidate in the upper end of the range, sustaining the upbeat sentiment surrounding the buck and widening the spread vs. their Canadian peers.

CAD remains decoupled from crude oil dynamics for the time being, ignoring the recent rally in WTI, which stays above the $52.00 mark for the first time since early March.

CAD stays under pressure from the speculative community, as net shorts have climbed to the highest levels since March 2016 on the week to April 4, as per the latest CFTC report.

USD/CAD significant levels

As of writing the pair is up 0.08% at 1.3420 and a break above 1.3452 (high Apr.6) would aim for 1.3457 (high Apr.4) and then 1.3496 (high Mar.14). On the flip side, the immediate support aligns at 1.3340 (low Apr.7) followed by 1.3319 (38.2% Fibo of the 2017 upside) and finally 1.3290 (100-day sma).