USD/CAD neutral stance, but dangerously close to October high

[charles caourtys]

• Canadian macroeconomic calendar has little to offer this week.
• Higher oil prices failed to boost the CAD this Monday.

The USD/CAD pair is trading little changed for a second consecutive day around the 1.2850 level, holding on to last week's gains but lacking follow-through. As its going across the FX board, the absence of macroeconomic news coupled with a good bunch of first-tier event coming from major economies later this week are keeping investors side-lined. Canada, however, has little to offer this week in terms of fundamental releases, which means that oil prices' movements will probably have a more relevant influence on the pair, aside from dollar's self weakness/strength. Anyway, and despite oil trades higher, the USD/CAD pair can't find sellers.

The pair is trading not far from a multi-month high set last October at 1.2915, pressuring the level ever since, but unable to break higher amid oil's strength, usually a positive factor for the Canadian dollar, alongside with strong local data. The pair is lacking direction according to technical readings in the daily chart, with its moving averages flat and the price hovering around it. In the short-term, the immediate resistance is Friday's high at 1.2879, followed by the mentioned October high, with supports from the current level at 1.2830 and 1.2803, this last, Friday's low.