USD/CAD: Buyers in control, 1.3100 – a whisker away

The US dollar opened this week on a firmer footing versus its Canadian counterpart, extending its bullish momentum seen last Friday, following Yellen’s hawkish comments.

USD/CAD trades well above hourly 200-SMA at 1.3065

Currently, the USD/CAD pair jumps +0.56% near fresh three-day highs of 1.3095, having bounced-off good support near 5-DMA. The USD/CAD pair remains strongly bid on the back of rising demand for the US dollar and renewed weakness in the oil prices. Both crude benchmarks are seen in the red in response to a big increase in the US rigs count data.

Moreover, the bulls continue to take advantage of Fed Chair Yellen’s hawkish comments backed rally in the US dollar versus its major rivals. Looking ahead, this week holds a number of key macro data for both the North American currencies, with the Canadian GDP and retail sales on one side, while the US NFP and PCE index on the other. While OPEC’s June 2 meeting on oil output talks will also have a major bearing on the Loonie.

USD/CAD Technical Levels

To the upside, the next resistances are seen near 1.3100 (round number) and 1.3135/55 (May 25 & 19 High). To the downside, immediate support might be located at 1.3032 (5-DMA) and below that at 1.3000 (round number/ psychological levels).