USD/CAD reverses and hits 1.2899, remains in a consolidation range

• CAD retreats as crude oil drops from multi-year highs.
• USD/CAD hits fresh daily high, remains in weekly range.

The Canadian Dollar weakened late during the US session following a decline in crude oil prices. The WTI barrel dropped from multi-year highs to levels below the $70 mark, erasing daily gains. The USD/CAD rose from 1.2850 to 1.2899 reaching a fresh daily high.

Despite the move higher, USD/CAD remains in the consolidation range that has been in place since April 24. The pair is limited above 1.2900 while to the downside, the area of 1.2800 continues to attract buyers. The mentioned consolidation takes place after a rally from 1.2525 (Apr 17 low).

The US Dollar remains on demand in the market and the main support of USD/CAD. Key data ahead includes US PPI (Wednesday) and CPI (Thursday) and the Canadian jobs report (Friday).

Technical levels

To the upside, the key resistance is the 1.2900 area. A consolidation on top would open the doors to more gains with potential targets at 1.2940 (Apr high) and 1.2960. On the flip side, immediate support might be seen at 1.2835 (May 4 & 7 low) followed by the lower limit of the current range at 1.2800/10.