“¢ Resurgent USD demand helps gains some positive traction on Thursday.
“¢ Subdued oil prices do little to influence demand for commodity-linked Loonie.
The USD/CAD pair caught some fresh bids on Thursday and moved away from over 1-1/2 month lows touched in the previous session.
The pair has been finding decent support near 100-day SMA, with resurgent US Dollar demand helping to gain some positive traction on Thursday and continue climbing beyond the key 1.30 psychological mark. The greenback caught some fresh bid and was being supported by the Fed’s upbeat assessment of the US economy, reaffirming gradual rate hike path.
Meanwhile, a subdued action around crude oil priced did little to influence demand for the commodity-linked currency – Loonie, with the USD price dynamics turning out to be an exclusive driver of the pair’s momentum through the early European session.
It would now be interesting to see if the pair is able to build on the positive momentum or once again meets with some fresh supply at higher levels amid relatively thin US economic docket, highlighting the release of usual initial weekly jobless claims and factory orders data.
Technical levels to watch
Immediate resistance is pegged near 1.3040 area, above which the pair is likely to make a fresh attempt towards reclaiming the 1.3100 handle. On the flip side, the 1.2985 region (100-day SMA) might continue to protect the immediate downside, which if broken might accelerate the slide further towards 1.2925-20 support area en-route the 1.2900 round figure mark.
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