USD/CAD climbs to session tops, around mid-1.3100s ahead of data/Powell

   “¢   A modest USD rebound helps to bounce off the 1.3100 neighborhood.
   “¢   Subdued oil prices do little to influence the commodity-linked Loonie.
   “¢   Today’s key focus would remain on Powell’s congressional testimony.

The USD/CAD pair finally broke out of its European session consolidation phase and refreshed session tops in last hour, albeit lacked any strong follow-through.

The pair, for the second consecutive day, managed to catch some bids ahead of the 1.3100 handle and might now be looking to snap three consecutive days of losing streak. The US Dollar selling pressure now seems to have eased a bid, at least for the time being and was seen as one of the key factors behind a modest rebound.  

Meanwhile, a subdued action around oil markets, with WTI crude oil consolidating recent downfall to near three-month lows, around the $67.00/barrel mark, did little to influence demand for the commodity-linked currency – Loonie and provide any meaningful impetus.

The USD price dynamics might continue to act an exclusive driver of the pair’s momentum on Tuesday as investors now look forward to the Fed Chair Jerome Powell semiannual congressional testimony for clues over the pace of interest rate hikes, amid escalating trade tensions.  

Ahead of the key event, today’s economic docket, featuring the release of Canadian manufacturing sales, followed by the US industrial production and capacity utilization rate, will be looked upon for some short-term trading opportunities.

Technical levels to watch

Immediate resistance is pegged near the 1.3155-60 region, above which the pair is likely to aim towards reclaiming the 1.3200 handle en-route 1.3215-25 supply zone. On the flip side, the 1.3110-1.3100 area now seems to have emerged as an immediate support, which if broken is likely to accelerate the fall towards 50-day SMA support, currently near the 1.3045-40 region.