USD/CAD consolidates recent gains to over 2-month tops, BoC awaited

   •  Holds above 100-day SMA for the first time since June
   •  BoC decision in focus

The USD/CAD pair now seems to have entered a bullish consolidation phase and held with minor gains closer to previous session's over 2-month tops.

Preserves overnight bullish break above 100-DMA hurdle

On Tuesday, the pair pushed through 100-day SMA barrier near the 1.2660-65 region, for the first time since early June, and was being supported by the US economic data, showing services and manufacturing activity expanded at a faster-than-expected pace in October. 

Meanwhile, a modest retracement in crude oil prices, which tends to weigh on the commodity-linked currency – Loonie, helped the pair to offset a subdued US Dollar price action. Adding to this, surging US Treasury bond yields helped limit any downslide and preserve overnight gains. 

The pair, however, lacked any firm directional bias as investors refrained from placing aggressive bets ahead of the BoC decision, due later during the NA session.

Ahead of the key event risk, the US economic docket, featuring the release of durable goods orders, would also be looked upon for some short-term trading impetus. 

Technical levels to watch

Bulls would be eyeing for a follow-through buying interest beyond the 1.2700 handle, above which the up-move is likely to get extended towards 1.2755-60 resistance area. 

On the downside, 100-day SMA resistance break, near the 1.2655 region, now becomes an immediate support to defend, which if broken might trigger a corrective slide towards the 1.2600 handle en-route mid-1.2500s.