USD/CAD stabilizes near the major psychological resistance level at 1.29000 mark after oil market extended their losses on recession worries. On the data front, the Canadian gross domestic product contacted by 0.2% in the month of May, which also acted as a headwind for any upside gains. The price traded in a tight range this week but remained above the 21-day exponential moving average. Canada is a major exporter of oil and oil market has posted their first monthly loss in this year. As a result of this, USD/CAD is likely to accelerate higher in the near term. However, if USD/CAD fails to reclaim the 1.29000 level then it is likely to correct lower in the near term.
