USD/CAD moves within striking distance of 19-month tops, just below mid-1.3600s
• A modest USD rebound helps regain some traction.
• Oil prices retreat from tops and undermine Loonie.
The USD/CAD pair quickly reversed a dip to sub-1.3600 level and moved back within striking distance of 19-month tops set in the previous session.
After a relatively subdued/range-bound price-action, the pair picked up the pace during the early North-American session and the latest leg of sudden up-move could be solely attributed to a modest US Dollar rebound.
This coupled with a slight retracement in crude oil prices undermined the commodity-linked currency - Loonie and further collaborated to the pair's goodish rally of over 50-pips over the past hour or so.
The pair touched an intraday high level of 1.3648, albeit the prevalent bearish sentiment surrounding the buck, amid the partial US government shutdown might continue to keep a lid on any runaway rally.
Moving ahead, market participants now look forward to the second-tier US economic releases - Chicago PMI and pending home sales data, for some short-term impetus on the last trading day of the week.
Technical levels to watch
On a sustained move beyond the 1.3660 immediate hurdle, the pair is likely to aim towards reclaiming the 1.3700 handle for the first time since mid-May 2017. On the flip side, the 1.3600-1.3590 region now seems to have emerged as immediate support, which if broken might accelerate the corrective slide towards 1.3565-60 intermediate support en-route the key 1.3500 psychological mark.