USD/CAD consolidates overnight strong up-move, just above 1.3400 handle
| • The USD struggles to build on the overnight upsurge and fails to provide any impetus.
• Weaker sentiment around oil prices undermine Loonie and remained supportive.
• Traders now eye US November PPI figures for some short-term opportunities.
The USD/CAD pair was seen consolidating overnight strong upsurge and remained confined in a narrow trading band, just above the 1.3400 handle.
A combination of diverging forces failed to assist the pair to extend the overnight goodish up-move of nearly 125-pips and led to a subdued/range-bound price action through the Asian session on Tuesday.
The US Dollar struggled to build on its strong rebound on Monday, supported by the latest Brexit drama-led sell-off in the British Pound, and failed to provide any fresh bullish impetus.
However, a mildly softer tone around crude oil prices, which tend to undermine demand for the commodity-linked currency - Loonie, helped limit any immediate downfall.
Looking at the technical picture, the range-bound price action might still be categorized as consolidation phase and hence, a fresh leg of an up-move, back closer to last week's near 18-month tops, remains a distinct possibility.
Moving ahead, today's US economic docket, highlighting the release of Nov. PPI figures, will now be looked upon for some fresh trading impetus later during the early North-American session.
Technical levels to watch
Any subsequent up-move is likely to confront some fresh supply near the 1.3445 region, above which the pair seems all set to aim towards reclaiming the key 1.3500 psychological mark. On the flip side, the 1.3380 level now seems to protect the immediate downside, which if broken might prompt some additional long-unwinding trade and accelerate the slide further towards the 1.3325-20 region en-route the 1.3300 handle.
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