USD/CAD clings on to its gains to 1.3050

The USD/CAD pair is seen retracing a bit from a five-day peak level of 1.3070 touched during European session, but maintained its strong bid tone and is currently trading just below 1.3050 region. 

Buoyant sentiment around the greenback had been the sole drive of the pair's up-surge on Wednesday. Steady crude oil prices also failed to extend any support to the Canadian Dollar.

Meanwhile, in absence of any market moving economic releases on Wednesday, the US Dollar might continue to attract fresh bids on rising prospects of an imminent Fed rate-hike, with the CME group's Fed Fund future discounting 40% probability of such an action in December. 

In the meantime, short-term traders will have a close look at today's official EIA report on US crude oil inventories, which could have an immediate impact on crude oil prices and eventually drive the commodity-linked currency, Loonie. 

Technical levels to watch

On the immediate upside, momentum above 1.3084 (July 13 high) should aim towards 1.3130-40 resistance area (July 11-12 highs), above which the pair could be head back towards May high resistance near 1.3200 round figure mark.

On the flip side, weakness below 1.3025-15 immediate support now seems to drag the pair below 1.3000 psychological mark support, towards testing at an important moving averages confluence area near 1.2960-50 region (comprising of 100-day and 50-day SMAs).