USD/CAD rebounds from 3-week lows amid a stronger dollar

USD/CAD moved of lows during the American session amid a stronger US dollar across the board. The pair erased losses and rose back above 1.2550. 

Dollar Index erases Monday’s losses and tests 93.50

Earlier the pair dropped to 1.2524, hitting the lowest level since August 1 after the release of Canadian data. Retail sales rose 0.1% and excluding the autos sector expanded 0.7% (against the 0.3% expected by analysts).  The Loonie climbed after the report. Despite erasing gains versus the greenback, the CAD is still the best performer among commodity currencies. 

Canada: Retail sales rose for 4th consecutive month in June, up 0.1% to $49.0 billion

Levels to watch 

Currently, it trades at 1.2555/60, unchanged for the day. To the upside, immediate resistance is seen at 1.2570 followed by the 1.2600 handle and 1.2630/35 (Aug 17 high). On the flip side, support levels might lie at 1.2545, 1.2520/25 (daily high) and 1.2480 (Jul 25 high).