• Loonie received some respite from the oil price recovery backed by the latest API stockpiles report, which showed a bigger-than expected drop in the crude reserves
  
  
• API said U.S. crude stockpiles fell 3.7 million barrels last week, with stocks at the Cushing, down almost 500,000 barrels
  
  
• Brent crude oil rose towards $50 a barrel on Wednesday as a drawdown in U.S. crude oil stocks outweighed the negative impact of weak economic manufacturing data from China
  
  
• CAD recovered losses and trades higher versus USD, USD/CAD hit fresh session lows near 1.3233
  
  
• Hourly cloud top at 1.3200 to provide support, breaks below could see the pair at 1.3180 levels     
  
  
• USD/CAD is currently trading at 1.3243, with immediate resistance at 1.3298 (Daily High Sep 23) and support at 1.3220 (Daily Low Sep 22)
  
  
• Canada July retail sales data due 1230GMT in focus, retail sales are estimated to climb 0.7% in July, following a strong advance of 0.6% in June
  
  
• US Markit Mfg PMI also due later in the U.S. session cloud influence further direction in the pair
  
  

Resistance Levels:

R1: 1.3298 (Daily High Sep 23)

R2: 1.3310 (Daily Highs Sep 7/8/11)

R3: 1.3325 (Daily High Sep 2)

Support Levels:

S1: 1.3220 (Daily Low Sep 22)

S2: 1.3200 (Psychological Level)

S3: 1.3183 (Kijun-Sen)