USD/CAD hits fresh 2-week tops, focus shifts to Canadian employment details
| • Remains well bid for the fifth straight session amid the ongoing USD rally.
• Weaker oil prices undermine Loonie and remained supportive of the move.
• Traders now eye Canadian monthly employment details for fresh impetus.
The USD/CAD pair climbed further beyond the 1.3300 handle on Friday and touched a fresh two-week high in the last hour.
The pair built on this week's strong up-move from sub-1.3100 level, or closer to near three-month lows set last Friday, with a combination of positive factors fueling the ongoing positive momentum for the fifth consecutive session.
The US Dollar remained supported by relatively upbeat incoming economic data and rising demand for perceived safe-haven currencies amid a fresh wave of global aversion trade, as depicted by a sea of red across equity markets.
Broader market worries about slowing global growth compounded further on Thursday after the European Commission lowered its Euro-zone economic growth forecasts for this year and 2020.
Adding to this, US-China trade tensions resurfaced following the US President Donald Trump's confirmation that he did not plan to meet with Chinese President Xi Jinping before a March 1 tariff deadline to achieve a deal.
A combination of negative developments exerted some additional downward pressure on crude oil prices, which undermined demand for the commodity-linked Loonie and remained supportive of the ongoing up-move.
The gains, however, seemed limited, at least for the time being, as traders now seemed to hold on the sideline and look forward to today's important release of Canadian employment details for some meaningful impetus on the last trading day of the week.
Technical levels to watch
Immediate resistance is pegged near the 1.3355-65 region, above which the pair is likely to aim towards surpassing the 1.3400 handle and test its next hurdle near the 1.3420 area. On the flip side, retracement back below the 1.3300 handle now seems to find immediate support near the 1.3270 area, which if broken might prompt some additional long-unwinding trade and accelerate the fall further towards 100-day SMA support, near the 1.3220 region.
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