USD/CAD: Upside targets 1.3390 amid broad USD strength

The USD/CAD pair prolongs it’s upwards trajectory for the fourth straight session this Thursday, and remains on track to book a weekly rise amid persistent broad based US dollar strength.

USD/CAD: Potential rounding bottom formation on daily sticks?

Currently, the USD/CAD pair advances +0.17% to 1.3350, having posted fresh six-week highs at 1.3360 last hours. The major is seen benefiting from the renewed bids caught by the US dollar against a basket of major currencies in the Asian trades, as recent hawkish Fedspeaks continue to bolster March rate hike bets, with markets pricing-in a 60%-70% chance. The latest Fedspeak from Brainard also advocated sooner rate hikes and lifted the USD index from near 101.50 levels to now hover near seven-week peaks of 101.98.

Om the CAD-side, the BOC left the interest rates unchanged yesterday, as largely expected, which failed to offer any support to the domestic currency, while oil prices remain weaker, despite a smaller-than expected build in the US crude inventories, which dampens the sentiment around the resource-linked Loonie.

Focus now remains on the Canadian GDP report and US jobless claims due later in the NA session for fresh impetus on the spot.

USD/CAD Technical Levels   

To the upside, the next resistances are seen near 1.3388 (Jan 20 high) and 1.3458/63 (Jan 4 & 3 high) and from there to 1.3500 (zero figure). To the downside, immediate support might be located at 1.3324/22 (daily low/ pivot) and below that at 1.3286/83/78 (daily S1/ previous low/ 100-DMA) and at 1.3250/47 (daily S2).