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 USD/CAD 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 USD/CAD against the downside.