USD/CAD: Bulls eyeing a test of Tuesday’s high

The USD/CAD pair made a solid comeback in the Asian session this Wednesday, reversing a dip from below 20-DMA, despite higher oil prices.

USD/CAD regains 5-DMA and beyond

Currently, the USD/CAD pair trades +0.16% higher at 1.3450, having posted fresh session highs at 1.3459 in the last hour. The Loonie fails to take advantage of higher oil prices, after the black gold rebounded from a 2% drop booked a day before on the back of a broadly stronger USD.

While persisting risk-on sentiment amid higher treasury yields boosts the greenback across the board, thus, providing extra legs to the ongoing recovery in the USD/CAD pair.

The major may get influenced by the API crude inventories data due to be reported in the NA session, while the FOMC Dec meeting minutes is also likely to have significant impact on the spot.

USD/CAD Technical Levels

To the upside, the next resistances are seen near 1.3463 (Tuesday’s high) and 1.3486 (10-DMA) and from there to 1.3498 (10-DMA). To the downside, immediate support might be located at 1.3425/22 (20-DMA/ daily low) and below that at 1.3405 (50-DMA) and at 1.3363 (daily S2).