USD/CAD clings to strong gains, near session tops around 1.2765 level
• Snaps four consecutive days of losing streak amid resurgent USD demand.
• Focus shifts to speeches by BOC Governor Poloz and Fed Chair Yellen.
The USD/CAD pair continued gaining some positive traction through the mid-European session and is currently placed near session tops, around the 1.2760-65 region.
The pair stalled its recent corrective slide and has now snapped four consecutive days of losing streak amid a fresh wave of US Dollar buying interest. A modest uptick in the US Treasury bond yields helped reignite the greenback rally and is turning out to be one of the key factors driving the pair higher.
Adding to this, initial signs of some profit-taking around oil markets, with WTI crude oil eroding majority of its early gains to fresh two-and-a-half year highs, further undermined the commodity-linked currency - Loonie and remained supportive of the pair's strong bid tone.
Later during the NY trading session, scheduled speeches by the BOC Governor Stephen Poloz and the Fed Chair Janet Yellen might trigger a fresh bout of volatility in the major. On the economic data front, the release of JOLTS Job Openings data from the US would be looked upon for some trading impetus.
Technical levels to watch
A follow-through buying interest has the potential to extend the up-move towards the 1.2800 handle, above which the pair is likely to dart towards 1.2875-80 horizontal resistance en-route the 1.2900 round figure mark.
On the downside, 1.2720 area, closely followed by the 1.2700 handle, now seems to protect the immediate downside, which if broken might turn the pair vulnerable to aim towards testing 100-day SMA support near the 1.2815 region.