The Canadian dollar is recovering part of the ground lost vs. its American neighbour on Thursday, now taking USD/CAD to the mid-1.3100s, slightly in the red territory.

USD/CAD deflates from 1.3200

After four consecutive sessions with gains, the pair is now attempting a pullback after another rejection from tops beyond the critical 1.3200 handle on Wednesday.

In fact, the buck has failed to surpass the 1.3200 barrier on a more sustainable basis yesterday despite the positive message from the FOMC minutes.

The recent up move around the greenback has been backed by the solid performance from US yields, at the same time sustained by rising expectations of a rate hike by the Federal Reserve (in March?).

Looking ahead, US Initial Claims are due along with the Chicago National Activity Index and the speech by Atlanta Fed D.Lockhart.

USD/CAD significant levels

As of writing the pair is lising 0.17% at 1.3142 facing the next support at 1.3097 (low Feb.21) seconded by 1.3057 (low Feb.17) and then 1.3007 (low Feb.16). On the other hand, a breakout of 1.3211 (high Feb.22) would aim for 1.3215 (high Feb.7) and finally 1.3225 (55-day sma).