USD/CAD sits near multi-week tops, just above mid-1.3200s
- The pair gained some traction despite a combination of negative factors.
- Bulls seemed unaffected by a subdued USD demand, positive Oil prices.
- Thursday’s speeches by influential FOMC members eyed for a fresh impetus.
The USD/CAD pair held steady above mid-1.3200s, or near five-week tops, with bulls still awaiting a move beyond the very important 200-day SMA.
The pair ticked higher for the fifth consecutive session – also marking its eighth day of a positive move in the previous nine – and seemed rather unaffected by bullish oil prices, which tend to underpin demand for the commodity-linked currency – Loonie.
Bulls await a sustained move beyond 200-DMA
Even a subdued US Dollar price action, weighed down by a sharp pullback in the US Treasury bond yields, did little to dampen the prevalent bullish sentiment surrounding the major, albeit kept a lid on any runaway rally, at least for the time being.
Oil prices gained some follow-through traction on Thursday and remained well supported by the overnight report, which showed a surprise drop in the US crude inventories, and comments from an OPEC official about lower US shale production growth in 2020.
The prevalent risk-off mood, amid growing uncertainty over a preliminary US-China trade deal, seemed to be the only factor that benefitted the greenback's perceived safe-haven status against its Canadian counterpart and driving the pair higher.
It, however, remains to be seen if bulls are able to capitalize on the momentum and make it through a significant technical barrier as market participants now look forward to scheduled speeches by influential FOMC member for some meaningful trading impetus.
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.
