USD/CAD keeps highs above 1.3400, US PCE eyed

The greenback remains on a strong fashion on Monday, with USD/CAD sticking to the area of daily highs above 1.3400 the figure.

USD/CAD attention to oil, US data, Clinton

The pair is looking to extend its positive streak for another week so far as the Canadian dollar continues to shed ground amidst increasing demand for the greenback and declining crude oil prices.

The barrel of West Texas Intermediate is now extending last week’s drop to the $48.40 area following the first drop in US oil rig counts since June, according to the latest report by driller Baker Hughes.

Data wise in the US, docket the Fed’s preferred inflation gauge, the PCE, is due later in the NA session for the month of September, along with Personal Income/Spending during the same period. In Canada, Raw Material Price Index and Industrial Product Price are also to be published.

On the positioning side, CAD speculative net shorts remained in place during the week ended on October 25, while Open Interest has climbed to 5-week tops.

USD/CAD significant levels

As of writing the pair is gaining 0.13% at 1.3415 and a breakout of 1.3433 (high Oct.28) would open the door to 1.3575 (50% Fibo of the 2016 drop) and finally 1.3839 (61.8% Fibo of the 2016 drop). On the flip side, the immediate support aligns at 1.3264 (20-day sma) ahead of 1.3097 (200-day sma) and then 1.3002 (low Oct.19).