USD/CAD jumps to session tops, near 1.2830 level

Haresh Menghani FXStreet

• The post-Fed USD selling abates.
• Positive oil prices capping gains.
• Economic docket eyed for fresh impetus.

The USD/CAD pair caught some fresh bids on Thursday and has now recovery part of previous session's slide to weekly lows.

With investors looking past yesterday's perceived dovish FOMC projections, a goodish rebound in the US Treasury bond yields helped ease the post-Fed US Dollar selling pressure and assisted the pair to gain some positive traction.

Meanwhile, a mildly positive trading sentiment around crude oil prices, which tends to benefit the commodity-linked currency - Loonie, could keep a lid on any strong follow-through up-move.

On the economic data front, the Canadian New Housing Price Index (NHPI), along with monthly retail sales data and weekly initial jobless claims data from the US is due for release on Thursday and would also be looked upon for fresh impetus during the early NA session.

Later in the day, the BOC Governor Stephen Poloz's scheduled speech might also contribute towards providing the required momentum to help the pair to break through its 5-day old trading range.

Technical levels to watch

Immediate resistance is pegged near mid-1.2800s, above which the pair is likely to make a fresh attempt to surpass the 1.2875-80 supply zone and aim towards reclaiming the 1.2900 handle.

On the flip side, the 1.2800-1.2790 region remains an immediate strong support to defend, which if broken might turn the pair vulnerable to head back towards the 1.2700 handle with some intermediate support near the 1.2760 region.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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