USD/CAD climbs further to test 1.2950 on stronger USD

Broad based US dollar rebound remains the underlying key theme in the Asian trades this Wednesday, pushing USD/CAD further into the positive territory towards the mid-point of 1.29 handle.

USD/CAD supported at NY close just ahead of 1.29 handle

Currently, the USD/CAD pair rises 0.23% to 1.2938, trading within a striking distance of fresh session highs printed at 1.2941 last minutes. The Canadian dollar fails to benefit from the recent rally in the oil prices to fresh 2016 highs, as the risk sentiment and upbeat US macro data continue to favour the US currency and therefore, keeps USD/CAD largely supported.

As for today’s trade so far, the USD/CAD pair manages to the recent upmove well beyond 1.29 handle as a renewed bout of buying interest seen in the US dollar versus its major peers, triggered fresh rally in the major. Meanwhile, both crude benchmarks trade modestly flat, providing little help to the CAD bulls.

Later today, the EIA crude inventory report and the FOMC meeting minutes will be on the cards in the NA session, which is expected to have major impact on USD/CAD.

USD/CAD Technical Levels

To the upside, the next resistances are seen near 1.2964 (May 16 High/ Daily R1) and 1.3000 (round number). To the downside, immediate support might be located at 1.2890 (50-DMA) and below that at 1.2830/26 (May 13 & 11 Low).