USD/CAD: Bulls in control, 6-week tops on sight

The US dollar regained poise versus its Canadian counterpart on Tuesday, sending USD/CAD back towards six-week tops previously posted at 1.3558 levels.

USD/CAD fast approaching Nov high

Currently, the USD/CAD pair trades +0.20% higher at 1.3535, looking for a break above 1.3550 levels. The major remains strongly bid amid broad based US dollar strength, having witnessed a solid rally from ahead of 1.35 handle.

Moreover, subdued oil prices also fail to provide any impetus to the resource-linked Loonie, hence, underpinning the sentiment around USD/CAD.

Also, markets continue weigh downbeat Canadian GDP report released last Friday, as focus now shifts towards a fresh set of US macro news lined up for release amid holiday-thinned trading session today.

USD/CAD Technical Levels

To the upside, the next resistances are seen near 1.3558 (multi-month highs) and 1.3590 (Nov 14 high) and from there to 1.3626 (daily R3). To the downside, immediate support might be located at 1.3518 (5-DMA) and below that at 1.3500 (round figure) and at 1.3475/74 (previous lows).