Forex: USD/CAD retreats from 1.0204 high

FXstreet.com (Barcelona) - The rally towards 1.0204 high in the American opening is now being retraced market pressure eases and corrects the volatile moves. The USDCAD retraction seems to be heading towards the 20-day moving average at 1.0170.

While the risk-off sentiment on the euro crisis and economic slowdown puts the oil market under pressure, down by -3.20% on the day (WTI), geopolitical tensions in the Middle East coming from Syria and Iran are keeping the chart away from a wider downside. The correlation between the CAD and energy prices is high.

On the upside, 1.0200 psychological level is resistance against more upside. The 200-day moving average at 1.0107 holds the USDCAD against the downside.