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   “¢   The USD bullish run gets an additional boost from today’s upbeat US economic data.
   “¢   Weaker oil prices/disappointing Canadian ADP report weigh heavily on Loonie.

The USD/CAD pair continued scaling higher through the early North-American session and spiked to three-week tops, around the 1.3260-70 region in the last hour.

After yesterday’s sharp retracement, the pair regained positive traction and rallied over 100-pips from an intraday low level of 1.3160. A combination of supporting factors, ranging from persistent US Dollar buying interest and the ongoing downfall in oil prices, were seen driving the pair higher.  

Upbeat economy outlooks from the Fed Chair Jerome Powell and the central bank’s Beige Book report, along with a goodish pickup in the US Treasury bond yields continued benefitting the greenback. This coupled with a duo of upbeat US economic releases – Philly Fed manufacturing index and the initial weekly jobless claims,  provided an additional boost.

Meanwhile, weaker crude oil prices dented demand for the commodity-linked Loonie, which was further weighed down by disappointing Canadian ADP National Employment Report, coming in to show a fall of 10.5K jobs in June.

Technical Analysis

The pair on Thursday rebounded from 50% Fibonacci retracement level of the 1.3064-1.3234 recent up-move. A subsequent up-move beyond 1.3234 level now seems to have opened room for an extension of the bullish trajectory.

However, hourly RSI (14) has now moved into overbought territory and hence, it would be prudent to wait for a follow-through momentum beyond 61.8% Fibonacci expansion level before positioning for further up-move, even beyond the 1.3300 handle.  

Spot rate: 1.3260
Daily High: 1.3269
Daily Low: 1.3160
Trend: Bullish

R1: 1.3300 (round figure mark)  
R2: 1.3337 (R3 daily pivot-point)
R3: 1.3386 (1-year top set on June 27)

S1: 1.3220 (horizontal zone)
S2: 1.3192 (20-day SMA)
S3: 1.3133 (S1 daily pivot-point)