USD/CAD rise to 3-week tops near mid-1.3400s

The USD/CAD pair traded with positive bias for the fourth consecutive session and moved back closer to three week tops touched on Tuesday, near mid-1.3400s.

Today's up-move could be attributed to a modest retracement in oil prices, against the backdrop of an unexpected rise in the US commercial crude oil inventories. WTI crude oil was last seen trading with minor losses around the $51.00/barrel mark and was seen weighing on the commodity-linked currency - Loonie.

Meanwhile, spot prolonged its sharp recovery move from 100-day SMA touched on Monday despite of subdued greenback price-action. In fact, the key US Dollar Index remained stuck within familiar weekly trading range and barring the initial knee-jerk reaction, seems to have largely ignored Wednesday's stellar ADP report and hawkish FOMC meeting minutes. 

The incoming US economic data would continue to drive investors' expectations over the number of additional Fed rate-hikes in 2017. Hence, Friday's keenly watched NFP print now becomes the next big fundamental trigger for the pair's near-term trajectory. 

Apart from the US macro data, market participants will keep a close track on a crucial meeting between the US President Donald Trump and his Chinese counterpart Xi Jinping.

Technical levels to watch

A follow through buying interest above 1.3450 level is likely to accelerate the up-move towards 1.3475-80 horizontal resistance before the pair aims towards reclaiming the 1.35 important psychological mark and head towards testing 2-1/2 month highs resistance near 1.3535 level touched on March 9.

On the downside, retracement below 1.3430-25 immediate support might continue to find some buying interest near the 1.3400 handle, below which the pair is likely to drop towards 1.3380 strong horizontal support.