USD/CAD warming up for 1.3100?

The greenback keeps intact its march north on Thursday, now lifting USD/CAD to the 1.3080 area.

USD/CAD boosted by FOMC 

The rally in USD has resumed its pace in the second part of the week, reinforced by yesterday’s unexpected hawkish tone from the FOMC minutes, which have reinstated the idea of a potential rate hike by the Fed at its meeting in June.

In addition, CAD continues to suffer the correction lower in crude oil prices, with the barrel of the American benchmark for the light sweet oil hovering over $47.50 after hitting fresh 2016 highs near $49.00 on Wednesday.

USD/CAD significant levels 

As of writing the pair is advancing 0.35% at 1.3079 and a breakout of 1.3219 (high Apr.5) would open the door to 1.3312 (38.2% Fibo of 1.4692-1.2458) and then 1.3365 (200-day sma). On the other hand, the immediate support aligns at 1.2798 (20-day sma) followed by 1.2768 (low May 12) and finally 1.2461 (2016 low May 3).