USD/CAD bulls looking to extend the momentum further beyond 1.3300 handle
- The USD gains some follow-through traction and remained supportive.
- Rising Oil prices underpinned Loonie and kept a lid on any strong gains.
The USD/CAD pair traded with a positive bias for the second consecutive session on Wednesday and built on the previous session's solid bounce from near two-week lows.
The pair on Tuesday reversed an early dip to the 1.3225 region - the lowest since August 14 - and the intraday uptick was supported by a modest pickup in the US Dollar demand. The greenback picked up the pace during the US trading session on Tuesday after the US President Donald Trump softened his tone against China and predicted that the two countries will be able to reach a trade deal.
Positive Oil prices capping gains
A follow-through USD buying interest remained supportive of the ongoing positive move through the early European session on Wednesday, with bulls now looking to extend the momentum further beyond the 1.3300 buying handle. However, rising Crude Oil prices underpinned the commodity-linked currency - Loonie and turned out to be one of the key factors that kept a lid on any further up-move for the major.
The pair remained well below the 1.3345 heavy supply zone that has been acting a key barrier since the beginning of this month, which should now act as a key trigger point for bullish traders and pave the way for a further near-term appreciating move amid absent relevant market moving economic releases from the US or Canada.
Technical levels to watch
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
