USD/CAD testing highs near 1.3380, US data eyed

The USD/CAD pair remains better bid in the mid-European session, having regained some ground as the greenback turned positive against its main peers.

USD/CAD eyes 1.3400

Currently, the USD/CAD pair is last seen exchanging hands at fresh session highs of 1.3382, advancing +0.11% on the day. The major picked-up significant strength over the last hour, in response to broad based US dollar recovery. The USD index turned positive at 103.28, session tops, and now looks to retest daily highs scored in Asia at 103.38.

Moreover, a retreat in oil prices also hit the sediment around the resource-linked Loonie, further pushing the prices northwards.

Nothing of relevance for the major today except for the US existing home sales data, and hence, attention turns towards the Canadian CPI and retail sales data lined up for release tomorrow. While the US macro releases will also provide fresh direction on the spot.

USD/CAD Technical Levels

To the upside, the next resistances are seen near 1.3400 (round figure) and 1.3419 (daily R1) and from there to 1.3436 (3-week tops). To the downside, immediate support might be located at 1.3315 (Dec 19 low) and below that at 1.3300 (round figure) and at 1.3283 (10-DMA).