USD/CAD extends strong momentum further beyond 1.3300 handle
|The USD/CAD pair was seen digesting the strong gains to the highest level since mid-March led by disappointing Canadian economic data.
Currently trading around 1.3330 region, the pair caught fresh bids during early NA session after build on Thursday's strong up-move after both Canadian monthly retail sales and inflation print fell short of consensus estimates and weighed heavily on the Canadian Dollar. Moreover, renewed weakness in oil prices, with WTI crude oil now inching back towards $50.00 psychological mark, is further denting demand for the commodity-linked currency - loonie.
Meanwhile, the greenback strength gained additional legs during early US session, with the overall US Dollar Index storming to 8-month highs on reviving hopes of an eventual Fed rate-hike action by the end of this year, and provided further momentum to the pair's ongoing bullish momentum.
With Canadian macro data out of the way, the pair would now take cues from the broader sentiment surrounding the greenback and oil price dynamics.
Technical levels to watch
The ongoing momentum seems strong enough to continue boosting the pair further towards 1.3400 round figure mark before darting towards its next major hurdle near 1.3450 region. Meanwhile on the downside, previous resistance near 1.3300 handle now becomes immediate support to defend, which if broken could trigger a near-term profit-taking move towards 1.3260-50 horizontal support.
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