USD/CAD attempting a fresh break-out through 1.3400 handle
|After Monday's brief reversal, the USD/CAD pair resumed with its upward trajectory and is now making a fresh attempt to break through 1.3400 handle.
The pair maintained bid tone for the fourth straight session on Friday, near 7-month high, amid broad based US Dollar strength led by growing market expectations that the Federal Reserve would eventual move towards raising interest rates by the end of this year. CME group's FedWatch Tool is pricing-in 72% probability of such an action in December and has been underpinning the greenback in the past few weeks.
Meanwhile, softness in oil prices, with the barrel of WTI crude sustaining weakness back below $50.00 mark, is also weighing on the commodity-linked currency - Loonie, and is supportive of the pair's recent upward trajectory.
Later during NA session, the influential release of US GDP print for the third quarter of 2016 would grab investor attention and would be the next fundamental trigger that will assist to determine the pair's next leg of directional move. The US economic docket also features the revised UoM consumer sentiment for October.
Technical levels to watch
A sustained move above 1.3400 handle should open room for further appreciating move immediately towards 1.3445-50 resistance area en-route its next major hurdle near 1.3500 psychological mark. On the downside, weakness below 1.3375 immediate support could get extended towards 1.3350 support, which if broke might extend the corrective slide towards 1.3300-1.3290 weekly lows support.
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