USD/CAD Review: Bulls eyeing a sustained move beyond 1.32 handle, BoC in focus
• Resurgent USD demand helps regain traction and turn higher for the fifth straight session.
• A sharp fall in oil prices weigh on Loonie and further collaborates to the positive momentum.
• Today’s BoC monetary policy decision and Friday’s NFP report to set the near-term direction.
The USD/CAD pair quickly reversed an Asian session dip to 1.3165 area and is now making a fresh attempt to build on the momentum beyond the 1.3200 handle.
Growing concerns over a possible escalation in global trade conflict continued benefitting the US Dollar's safe-haven status and turned out to be one of the key factors behind the pair's positive momentum for the fifth consecutive session.
Meanwhile, NAFTA uncertainty, coupled with a sharp retracement in crude oil prices further weighed on the commodity-linked currency - Loonie and collaborated to the pair's uptick to near 1-1/2 month set in the previous session.
The uptick, however, seemed lacking any strong follow-through as investors now seem to refrain from placing any aggressive bets ahead of today's key event risk - the latest BoC monetary policy update, due to be announced later during the early North-American session.
This coupled with Friday's keenly watched US monthly jobs report, popularly known as NFP, will play an important role in determining the pair's next leg of directional move.
Technical Analysis
Looking at the technical picture, the pair on Tuesday finally confirmed a bullish break through an important confluence hurdle, comprising of 50-day SMA and two-month-old descending trend-channel resistance.
A follow-through buying interest beyond the 1.3200 handle would further reinforce the bullish breakout and pave the way for an extension of the ongoing upward trajectory in the near-term.
The 1.3265-70 region, followed by the 1.3300 round figure mark might provide some intermediate resistance on the way up to the yearly high level of 1.3386 in the next couple of weeks.
