USD/CAD sits near 4-week tops, comfortably above 1.2800 handle
• Edges higher as oil prices extend corrective slide.
• Renewed USD selling bias largely negated.
• Focus remains on US GDP revision and Yellen’s testimony.
The USD/CAD pair held with modest gains near one-week tops and might now be looking for a fresh bullish break through the 1.2835 hurdle, or near 4-week tops.
Tuesday's stronger US consumer confidence data provided a minor boost to the US Dollar and helped the pair to build on previous session's goodish recovery move.
Adding to this, declining crude oil prices further dampened demand for the commodity-linked currency - Loonie and further collaborated to the pair's decisive move back above the 1.2800 handle.
A mildly negative trading sentiment around oil markets, ahead of the highly-anticipated OPEC meeting, now seems to have offset some renewed greenback selling bias on Wednesday and helped the pair to preserve overnight strong gains.
With the key focus on the long-awaited US tax reform plan, investors now look forward to the first revision of US Q3 GDP figures and the outgoing Fed Chair Janet Yellen's testimony for fresh imeptus.
Today's US economic docket also features the release of pending home sales and weekly crude oil inventories data, which might also help traders to grab short-term trading opportunities.
Technical levels to watch
Momentum beyond 1.2835 level is likely to accelerate the up-move towards 1.2885 horizontal resistance en-route the 1.2900 handle. On the flip side, weakness below 1.2820 level now seems to find support near the 1.2800 handle, which if broken could drag the pair back towards 1.2755-50 support area.