USD/CAD sits at fresh 1-year tops, comfortably above 1.3300 handle

   “¢   A strong follow-through USD buying remains supportive of the positive momentum.
   “¢   A modest retracement in the US bond yields now seemed to cap additional gains.
   “¢   Weaker oil prices weigh on Loonie and might continue to help limit immediate downside.

The USD/CAD pair held on to its mildly positive tone near fresh one-year highs, albeit seemed lacking any strong follow-through buying interest.  

The pair seemed largely unaffected by the ongoing US Dollar upsurge, with a modest retracement in the US Treasury bond yields failing to assist the pair to capitalize on its early up-move and capping any additional gains.

Adding to this, near-term overbought conditions could also be one of the factors holding investors back from placing any fresh aggressive bullish bets and eventually led to a subdued/range-bound price action through the early European session.

The downside, however, remained cushioned amid a weaker tone surrounding crude oil prices, which tends to dampen demand for the commodity-linked currency – Loonie and hence, any meaningful slide would now be looked upon as a buying opportunity.

Traders now look forward to the release of second-tier US economic data – Philly Fed manufacturing index and the usual initial weekly jobless claims data in order to grab some short-term opportunities later during the early North-American session.

Technical levels to watch

Immediate resistance is pegged near the 1.3345-50 region, above which the pair is likely to aim towards reclaiming the 1.3400 handle with some intermediate hurdle near the 1.3370-75 zone.  

On the flip side, any meaningful retracement back below the 1.3300-1.3290 region is likely to find support near the 1.3265 area, which if broken might prompt some additional long-unwinding trade.