USD/CAD clings to gains above 1.3500 handle

Fed rate-hike expectations continue to boost the greenback across the board, with the USD/CAD pair holding on to its move back above 1.3500 psychological mark. 

Currently trading around 1.3520-25 region, albeit marginally off session peak level of 1.3535, the pair continues to reap benefits from Wednesday's stronger-than-expected US durable goods orders and hawkish FOMC meeting minutes, which now seems to have confirmed an eventual Fed rate-hike action in December.

Meanwhile, a mild retracement in oil prices, with WTI crude oil now trading back below $48.00/barrel mark, is further weighing on the commodity-linked currency - Loonie, and is supportive of the pair's up-move, for the third straight session, on Thursday. 

With US markets closed on the back of Thanksgiving Day holiday and nothing of relevance from Canadian economic docket, the pair would be dependent solely on price-action surrounding crude oil prices. 

Technical levels to watch

Renewed strength above 1.3530 level is likely to boost the pair immediately towards 1.3565 (Nov. 18 high) above which the pair seems all set to retest recent multi-month high level near 1.3590 region, touched on Nov. 11. Meanwhile, weakness below 1.3500 handle, leading to a subsequent drop below session through support near 1.3485 region, is likely to accelerate the slide towards 1.3450-45 horizontal support.

To learn more about this topic, check our video analysis