USD/CAD loses traction after refreshing session highs above mid-1.32s

The USD/CAD gathered some bullish momentum in the early NA session and refreshed its session high at 1.3258. After the initial rise, the pair eased lower and is now trading at 1.3245, up 0.26% on the day. 

Just before the NA session got underway, New York Fed President William Dudley crossed the wires saying that halting the tightening cycle would damage the economy and added that he expects to see 3% wage growth over the next year or two. Dudley's hawkish comments provided a boost for the greenback, pushing the US Dollar Index to a new session top at 97.07. As of writing, the index is floating just a tad above the 97 handle, up 0.15% on the day.

On the other hand, after breaking above the critical $45 handle, the barrel of West Texas Intermediate holds on to its daily gains, allowing the commodity-linked loonie find demand and making it difficult for the pair to extend its rise.

The rest of the session won't be offering any data and the pair is expected to continue to move in its 50-pip daily range.

Technical outlook

Since June 14, the RSI on the daily graph has been moving near the 30 mark, suggesting that the pair's downfall is exhausted. However, we are yet to see a meaningful correction. With a decisive break above 1.3300 (psychological level) the pair's correction could gather momentum toward 1.3365 (200-DMA) and 1.3400 (psychological level/20-DMA). On the downside, supports could be seen at 1.3165 (Jun. 14 low), 1.3100 (psychological level) and 1.3010 (Feb. 16 low).

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