USD/CAD moves back closer to multi-week tops/200-DMA
- USD/CAD gains positive traction for the third consecutive session on Friday.
- Bulls seemed unaffected by a subdued USD demand, recovering oil prices.
- Friday’s Canadian GDP print and US economic data eyed for a fresh impetus.
The USD/CAD pair reversed an early dip to sub-1.3200 levels and moved back closer to seven-week tops set in the previous session.
Having touched an intraday low level of 1.3195, the pair caught some fresh bids and has now turned higher for the third consecutive session on Friday – also marking its fifth day of a positive move in the previous six.
Bulls shrug off a combination of negative factors
The uptick seemed rather unaffected by a subdued US dollar price action and largely shrugged off a solid intraday bounce in crude oil prices, which tend to underpin demand for the commodity-linked currency – the loonie.
Despite the previous session's in line US GDP print and a goodish pickup in the US Treasury bond yields on Friday, the greenback struggled to attract any meaningful buying interest and remained on the defensive.
Even a strong recovery in oil prices, now up around 1.5% for the day, failed to dampen the prevalent bullish sentiment surrounding the major or stall the positive move back closer to multi-week tops.
Currently hovering around the 1.3220-25 region, a subsequent strength beyond the very important 200-day SMA might be seen as a fresh trigger for bulls and set the stage for a further near-term appreciating move.
Moving ahead, market participants now look forward to the release of the Canadian GDP growth figures, which coupled with a slew of second-tier US economic data might provide some meaningful impetus.
Technical levels to watch