USD/CAD drops below 1.2400 as WTI rebounds ahead of OPEC+ meet

• USD/CAD stalls its post-Fed recovery as WTI finds its feet in European trading.
• The downside in the pair remains capped by the resurgent USD demand.
• All eyes on the WTI price action ahead of the OPEC meeting.

USD/CAD is falling back towards the daily lows of 1.2375, as the bulls fail to resist above the 1.2400 level.

In doing so, the major pauses the Asian rebound, courtesy of the rebound in WTI prices. The US oil is recovering ground, as traders reposition ahead of the OPEC and its allies (OPEC+) meeting due later on Thursday.

Higher oil prices benefit the resource-linked Canadian dollar, as black gold is Canada’s top export product.

Despite the pullback in the pair, the bulls remain hopeful amid a broad-based recovery in the US dollar. The greenback has reversed more than half of the Fed-led decline, now trading at 94.10, up 0.25% on the day.

The US currency tumbled alongside the Treasury yields during Fed Chair Jerome Powell’s press conference, in which he responded that the central bank will stay patient on the interest rate hikes until the maximum employment goal is reached.

Looking ahead, the pair will remain at the mercy of the US dollar dynamics and the sentiment around the US oil, with all eyes on the OPEC+ meeting.

USD/CAD: Technical levels to watch out