USD/CAD recovers to 1.3080, attempting a move back above 200-DMA

Having posted a 3-day low at 1.3051, the USD/CAD pair retraced few pips to currently trade around 1.3080 and might now make a fresh attempt to move back above the very important 200-day SMA.

A minor retracement in crude oil prices is extending some support for the pair's rebound from lower levels. Recovering crude oil prices had been the key factor driving the pair lower since the beginning of current trading week. 

Hence, focus would remain on developments surrounding news that several OPEC members might be pushing for a fresh deal on output freeze when major oil producing countries hold an informal talk at an energy conference in September.

Meanwhile, across the board selling pressure surrounding the US Dollar after Tuesday's release of nonfarm productivity data aggravated the slide for third consecutive day during Asian session on Wednesday.

Levels to watch

Immediate resistance ahead at 1.3085 (Daily 20 SMA), 1.3089 (Daily Classic S1), 1.3106 (Hourly 20 EMA), 1.3107 (Hourly 200 SMA) and 1.3109 (Yesterday's Low).

Next support to the downside can be found at 1.3058 (Daily Classic S2), 1.3052 (Daily Low), 1.3044 (Weekly Classic S1), 1.3019 (Weekly Low) and 1.3007 (Daily Classic S3).