The USD/CAD pair traded with mild positive bias on Wednesday and is now flirting with session peak near 100-day SMA, albeit remained within near-term trading range.
Currently trading around 1.3250 region, the pair gained some traction during early NA session amid resurgent US Dollar buying interest ahead of President-elect Donald Trump's first formal press conference, later during the day.
However, looking at the broader picture, the pair has been confined within 100-pips broader trading range around 100-day SMA and remained unaffected by the recent price action in oil market, which tends to drive demand for the commodity-linked currency – Loonie. In fact, WTI crude oil has declined by over 5% in the week so far but has failed to provide any impetus but any movement has proved lackluster.
In absence of any major economic releases, investors would take clues from the scheduled Donald Trump’s press conference and be able to determine the directional bias for the pair over the medium-term.
Technical levels to watch
A follow through buying interest above 100-day SMA resistance near 1.3255-60 region, now seems to boost the pair immediately towards 1.3300 handle, en-route 1.3335-40 resistance area. Alternatively, sustained break below 1.3200 handle should now drag the pair below 1.3175 support towards testing its next support near 1.3130 area ahead of the very important 200-day SMA support near 1.3100 round figure mark.
- R3 1.3330
- R2 1.3295
- R1 1.3261
- PP 1.3225
- S1 1.3191
- S2 1.3156
- S3 1.3122