USD/CAD jumps o fresh 4-week tops, near 1.29 handle ahead of data
• Gains traction for the fourth straight session.
• Resurgent USD demand supporting the up-move.
• Positive oil prices fail to support Loonie.
The USD/CAD pair continued with its strong up-move for the fourth consecutive session and is currently placed at fresh 4-week tops, around the 1.2900 handle.
The pair initially went sideways during the Asian session on Thursday but found enough buying interest near mid-1.2800s to extend its near-term upward trajectory and inch closer to monthly highs resistance near the 1.2915 region.
Wednesday's data, showing that the US economy expanded in the third quarter at its quickest pace in three years, coupled with signs of progress in Republicans’ efforts to get the long-awaited tax bill passed, favors the US Dollar against its Canadian counterpart.
The market seems to have largely negated a goodish rebound in crude oil prices, which tends to underpin the commodity-linked currency - Loonie, with the USD price dynamics acting as an exclusive driver of the pair's bullish momentum.
Today's economic docket, featuring the releases of core PCE price index, personal income/spending data and usual initial jobless claims from the US, along with Canadian current account data, would now be looked upon for short-term trading opportunities.
Technical levels to watch
A follow-through buying interest beyond the 1.2900 handle, leading to a subsequent move above 1.2915 hurdle, should pave the way for a test of the very important 200-day SMA hurdle near the 1.2970 region.
On the flip side, 1.2865-60 area now seems to protect the immediate downside, which if broken could accelerate the fall back towards the 1.2800 handle.