USD/CAD bulls making a fresh attempt to conquer 1.32 handle
| • USD extends bullish momentum and helps regain positive traction.
• Weaker oil prices weigh on Loonie and provide an additional boost.
• Sustained move beyond 1.3220-25 zone needed for any further up-move.
The USD/CAD pair finally broke out of its Asian session consolidation phase, with bulls now eyeing a move back above the 1.3200 handle.
After yesterday's modest retracement 1-1/2 week tops, the pair regained positive traction on Friday and was being supported by persistent US Dollar buying interest. Against the backdrop of easing US-China trade tensions, firming Fed rate hike prospects continued underpinning the greenback and was seen as one of the key factors driving the pair higher.
This coupled with a mildly negative trading sentiment around oil markets, with WTI crude oil just managing to hold its neck above the $70.00/barrel markets, was further seen weighing on the commodity-linked currency - Loonie and remained supportive of the up-move.
It, however, remains to be seen if the pair is able to maintain their dominant position or the 1.3220-25 supply zone continues to act as an immediate strong barrier in absence of any major market moving economic releases on the last trading day of the week.
Technical levels to watch
Momentum beyond the mentioned barrier is likely to get extended towards 1.3265 horizontal resistance before the pair eventually aims to reclaim the 1.3300 handle. On the flip side, mid-1.3100s now seems to have emerged as an immediate support, which if broken might prompt some additional weakness towards 1.3130 intermediate support en-route the 1.3100 round figure mark.
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