USD/CAD moves off lows, trims daily losses

USD/CAD extended losses to a fresh 10-day low on Monday as the loonie received a boost from higher oil prices amid headlines suggesting a coordination agreement between Russia and Saudi Arabia.

USD/CAD briefly dropped below the 100-day SMA and scored a low of 1.2906, although the dollar managed to trim losses as oil prices pulled back from highs. USD/CAD was last trading at the 1.2940 zone, still down 0.42% on the day.

Trading is expected to remain subdued during the American session, with US markets closed in observance of the Labor Day.

USD/CAD levels to consider

As for technical levels, next supports could be found at 1.2906 (Sep 5 low), 1.2860 (aug 23 low) and 1.2830 (Aug 26 low). On the other hand, resistances line up at 1.3000 (psychological level/10-day SMA), 1.3047 (Aug 29 high) and 1.3114 (Sep 2 high).