“¢ The USD preserves strong gains near 7-week tops and remains supportive.
“¢ Bullish oil prices do little to boost Loonie and stall the positive momentum.
The USD/CAD pair continued gaining positive traction through the early North-American session, with bulls looking to extend the momentum further beyond the key 1.30 psychological mark.
The pair built on last week’s sharp rebound from over four-month lows and continued with its upward trajectory for the sixth consecutive session amid the prevailing strong bullish sentiment surrounding the US Dollar.
Despite a modest retracement in the US Treasury bond yields from multi-year tops, the USD held on to its strong gains near seven-week highs and was seen as one of the key factors driving the pair back closer to over one-week tops touched in the previous session.
However, a goodish pickup in crude oil prices continued underpinning demand for the commodity-linked currency Loonie and turned out to be the only factor capping any meaningful up-move, at least for the time being.
On the economic data front, disappointing Canadian housing starts, coming in at 189K for September as compared to a downwardly revised 199K in August, did little to influence, with the USD price dynamics turning out to be an exclusive driver of the pair’s momentum on Tuesday.
Technical levels to watch
On a sustained move beyond the 1.3000-1.3010 zone, the pair is likely to accelerate the up-move further towards 1.3040 intermediate hurdle en-route the 1.3075-80 supply zone. On the flip side, the 1.2960-55 region now becomes an immediate support to defend, which if broken might turn the pair vulnerable to slide further towards retesting the 1.2900 round figure mark.
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