USD/CAD rally continues, consolidates above 1.3500

The greenback is rising against the Canadian dollar for the fourth day in a row and for the eighth time out of the last nine trading days. The rally continues to be supported by rising expectation of rate hikes from the Federal Reserve and the decline in crude oil prices. 

USD/CAD peaked today during the European session at 1.3533, the highest level since December 29. During the last hours, the pair has been consolidating, trading between 1.3495 and 1.3530. 

Regarding data, traders are awaiting the Canadian and US official employment reports, scheduled to be released at the same time (13:30 GMT). The latest reports from the US and Yellen’s comments, pushed Fed rate hike expectations to the upside adding support to the USD. 

On the opposite front, the decline in crude oil prices affected the Loonie. The WTI lost 8% since the beginning of the week falling to the lowest level since November. 

Technical levels 

To the upside, the 1.3535 and 1.3555 areas protect the key resistance that has become the 1.3600 handle. On the opposite direction, support might be seen at 1.3480 (daily low), 1.3435 (Mar 03 & 07 high) and 1.3395 (Mar 08 low).