“¢ A follow-through USD buying interest helps build on overnight rebound.
“¢ The bullish momentum seems unaffected by positive crude oil prices.
The USD/CAD pair traded with a positive bias for the second consecutive session and is currently placed at fresh session tops, comfortably above the 1.3100 handle.
Investors looked past Friday’s softer US wage growth data, with a goodish pickup in the US Dollar demand assisting the pair to built on overnight rebound from near four-week low level of 1.3066.
The uptick seemed largely unaffected by the prevalent strong bullish sentiment around crude oil prices, which tends to underpin demand for the commodity-linked currency – Loonie, with the USD price dynamics acting as an exclusive driver of the pair’s steady climb.
With today’s up-move, the pair has now recovered around 65-pips since the early North-American session on Monday and might now be aiming to test its immediate strong resistance near the 1.3150-60 region amid relatively thin economic docket.
Technical levels to watch
On a sustained move beyond the mentioned barrier, the momentum could get extended towards the 1.3200 handle en-route the 1.3225 supply zone. On the flip side, the 1.3100 handle now seems to protect the immediate downside, which if broken might increase the pair’s vulnerability to aim towards testing 50-day SMA support near the key 1.30 psychological mark.
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