The USD/CAD pair traded with positive bias for the fifth consecutive session and is now headed back to 14-month highs touched on Friday.
The pair continued gaining traction and prolonged its recent upward trajectory amid a follow through greenback buying interest, especially after the House of Representatives and the Senate approved a deal the federal government funded and avoid a shutdown.
Moreover, expectations of additional Fed rate-hike action, following Friday’s upbeat Price Index and Employment Cost data, despite of weaker quarterly GDP growth number, remained supportive for the US Dollar.
Meanwhile, a mildly negative trading sentiment surrounding oil prices, with WTI crude oil inching back closer to $49.00/barrel mark, is doing little to lend any immediate support to the commodity-linked currency – Loonie, and stall the pair’s strong bullish momentum back towards its highest level since late Feb. 2016.
Later during the day, the US treasury secretary Steven Mnuchin’s speech and the US macro data – core PCE price index, personal income / spending data and ISM manufacturing PMI print, along with Canadian Manufacturing PMI would now be looked upon for some fresh impetus.
Technical levels to watch
Bulls would be eyeing for a decisive break through the 1.3700 handle, above which the pair is likely to accelerate the up-move towards 1.3735 level (Feb. 25, 2016 high). On the downside, sustained break below 1.3635-30 immediate support might continue to attract some fresh buying interest near the 1.3600 handle.