USD/CAD clears 50-DMA barrier, surges to fresh two-week high

The greenback buying interest has picked-up pace, helping the USD/CAD pair to clear 50-day SMA barrier and spike to a fresh two-week high.

Currently trading around 1.3370 region, spot reversed early weakness to sub-1.3300 level and continued gaining traction, hitting fresh session peak, amid broad based US Dollar strength ahead of Trump's inaugural speech later during the day.

Meanwhile, Wednesday's dovish comments from BoC Governor Stephen Poloz, leaving doors open for further rate-cut, continue to undermine the Canadian Dollar and also seemed to collaborate to strong bid tone surrounding the major. 

Even the prevalent strength in oil market, with WTI crude oil trading with gains in excess of 1.0%, has failed to lend any support to the commodity-linked currency - Loonie, and hinder the pair's appreciating move for the third consecutive session. 

With today's up-move, the pair has now recovered over 350-pips from the vicinity of 1.30 psychological mark, nearly three-month lows touched on Tuesday. The pair now seems all set to snap three consecutive week of losing streak and end the week on strong footing.

Technical levels to watch

A follow through momentum now seems to confront immediate resistance near 1.3400 handle above which the pair seems more likely to extend its near-term upward trajectory towards 1.3455-60 region (monthly highs) before attempting a move towards reclaiming 1.3500psychological mark. 

On the downside, 50-day SMA near 1.3350 region now becomes immediate support, which if broken might drag the pair towards 1.3315 support. Weakness below 1.3315 support could get extended but now seems to be limited at 100-day SMA support near 1.3275 region.