“¢ The USD remains support by Clarida’s overnight hawkish comments.
“¢ Bullish traders seemed unaffected by a goodish rebound in oil prices.
“¢ The prelim US GDP print/Powell’s speech eyed for some fresh impetus.
After yesterday’s late retracement, the USD/CAD pair caught some fresh bids on Wednesday and is currently placed at five-month tops, around the 1.3325-30 region.
The pair built on its goodish rebound from the 1.3185 support area and continued gaining positive traction for the fourth consecutive session amid the prevailing bullish sentiment surrounding the US Dollar.
The greenback held steady near two-week tops, supported by overnight hawkish comments by the Fed Vice Chair Richard Clarida, and was seen as one of the key factors driving the pair higher.
Meanwhile, bullish traders seemed rather unaffected by a goodish rebound in crude oil prices, which failed to revive demand for the commodity-linked Loonie and did little to stall the pair’s ongoing positive momentum.
In fact, WTI crude oil climbed more than 1.0% on the back of a North Sea production outage and expectations that OPEC will decide to implement some form of supply cut to counter an emerging glut.
With the USD price dynamics acting as an exclusive driver of the pair’s momentum, today’s release of the prelim US Q3 GDP print and the Fed Chair Jerome Powell’s speech will now be looked upon for some fresh impetus.
Technical levels to watch
A follow-through buying has the potential to continue lifting the pair further towards 2018 swing high resistance, near the 1.3380-85 region, touched in June. On the flip side, the 1.3300 handle now becomes immediate support to defend, which if broken might accelerate the corrective slide towards the 1.3265-60 horizontal zone.
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