USD/CAD recovery stalled ahead of 1.3400

After testing lows near 1.3360 in early trade, USD/CAD has sparked a recovery although it seems to have run out of legs just below the 1.3400 handle.

USD/CAD losses momentum on US data

The pair’s bull run lost some impetus after US ISM Non-Manufacturing has missed forecasts for the month of October, coming in at 54.8 vs. 56.0 initially estimated and September’s 57.1.

Still in the US, Markit’s Services PMI matched consensus at 54.8 during the same period, while flash Unit Labor Cost and Nonfarm Productivity have come in mixed.

Adding to CAD buying, the barrel of West Texas Intermediate has trimmed earlier losses and is now down smalls in the $45.20 region.

USD/CAD significant levels

As of writing the pair is losing 0.07% at 1.3384 and a breakdown of 1.3349 (low Nov.1) would aim for 1.3281 (20-day sma) and finally 1.3093 (200-day sma). On the other hand, the initial hurdle aligns at 1.3433 (high Oct.28) followed by 1.3575 (50% Fibo of the 2016 drop) and finally 1.3839 (61.8% Fibo of the 2016 drop).