USD/CAD spikes to fresh session peak after BOC and US ISM

The USD/CAD pair regained traction and spiked to fresh multi-week tops following BOC monetary policy decision. 

Currently trading around 1.3440-35 region, the pair caught fresh bids after BOC maintained status-quo, and left key benchmark interest rates unchanged at 0.5%. The decision was on expected lines, but the pair managed to attract some follow through buying interest amid solid greenback performance.

Against the backdrop of growing expectations of an imminent Fed rate-hike move at its next meeting on March 14-15, upbeat release of the US ISM manufacturing PMI supported the strong bullish sentiment surrounding the greenback, with the key US Dollar Index holding steady closer to session peak, just shy of the 102.00 handle. 

Meanwhile, a positive trading sentiment around oil markets, with WTI crude oil trading with gains of around 0.5%, failed to lend any support to the commodity-linked currency – Loonie, with the USD price dynamics being an exclusive driver of the pair’s strong up-move for the third consecutive session.

Technical levels to watch

Immediate support is seen at 100-day SMA near 1.3275 region, below which the pair is likely to head back towards 50-day SMA support near 1.3210 region with some intermediate support near 1.3240-35 area. On the upside, momentum above mid-1.3300s now seems to pave way for continuation of the pair's strong up-move further towards 1.3400 handle, en-route 1.3430-35 horizontal resistance.