USD/CAD keeps highs near 1.3430 ahead of OPEC, data

The greenback is trading on a firm fashion on Tuesday, lifting USD/CAD back above the 1.3400 handle and testing highs in the 1.3430 region for the time being

USD/CAD attention to oil, US data

The pair is recovering part of yesterday’s deep retracement to sub-1.3400 levels following a better tone surrounding the buck and a renewed offered bias in crude oil prices.

In fact, the West Texas Intermediate is down around 1%, breaking below the $47.00 mark and hovering over the mid-$46.00 at the time of writing, while traders remain vigilant on the developments around the OPEC meeting in Vienna on Wednesday.

In the meantime, the underlying bullish sentiment in USD remains intact as we get closer to the Fed meeting in December, where global markets have already priced in a rate hike.

Later in the session, Canadian Current Account during Q3 is due along with US advanced Q3 GDP, CB’s Consumer Confidence, the S&P Case-Shiller index, PCE during Q3 and speeches by NY Fed W.Dudley (permanent voter, neutral) and J.Powell (permanent voter, neutral).

Following the latest CFTC report, CAD speculative net shorts have decreased to 3-week lows during the week ended on November 22.

USD/CAD significant levels

As of writing the pair is gaining 0.14% at 1.3428 and a break above 1.3566 (high Nov.18) would aim for 1.3575 (50% Fibo of the 2016 drop) and finally 1.3590 (high Nov.14). On the flip side, the immediate support aligns at 1.3374 (low Nov.22) ahead of 1.3311 (38.2% Fibo of the 2016 drop) and finally 1.3260 (low Nov.9).