The USDCAD recovered towards 1.2100 on Thursday, building off strong support at the psychological 1.2000 level.
The USDCAD was trading near session highs, climbing 0.6 percent to 1.2103. Immediate support is located at 1.2031, the daily low. Buying at intraday dips toward the low-1.2000 region is suggested at this point. Resistance is likely found at 1.2128, the high from May 5.
The pair has been on its heels in recent weeks, as the Canadian dollar draws on support from rising oil prices. Crude oil is trading at its highest level of the year, providing the necessary catalyst for commodity-driven currencies amid broad US dollar weakness.