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    USD/CAD turns negative as oil recovers, drops below 1.2850 Haresh Menghani

    The USD/CAD pair failed to capitalize on a bullish spike to 1.2873, after the release of US monthly retail sales data, and erased all of its gains to currently trade with modest losses around 1.2825 level. A rebound in crude oil prices, from session low level of $48.00, seems to exert restraint the USD/CAD pair to extend its upward trajectory for fourth consecutive day. Later during NY trading session, API is scheduled to release the weekly report on US stockpiles and would be looked upon for momentum play in the USD/CAD major.With no major macroeconomic releases scheduled from Canada, the US Dollar might continue to attract safe-haven flows amid jittery global financial markets and thus should limit any sharp slide for the USD/CAD pair.Technical outlookPointing to the pair's reversal from session high level of 1.2873, Nenad Kerkez, Analyst / Full Time Trader at Admiral Markets writes, " If the pair rejects from POC zone it should drop towards 1.2820 and 1.2800 and 4h close below 1.2800 will target 1.2733 and 1.2680 again. Breakout setup could become valid at the break of 1.2655 towards 1.2586 where we should see a bounce based on a confluence of historical buyers and L4 camarilla WPP.""For bearish trend to remain active the pair should be held below M pattern 1.2912."

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