USD/CAD Climbs to a Six-Week High Level of 1.3154
Following the release of weekly US jobless claims data, the USD/CAD pair spiked to 1.3154 marking its highest level since April 8.
The pair has witnessed a gradual recovery of nearly 700-pips from a multi-month low level of 1.2461 touched earlier during May, which was primarily led by broad based recovery for the greenback. Adding to it, prospects of a Fed rate-hike in June might continue to support the near-term upward trajectory for the pair.
Moreover, profit taking in crude oil prices led by an unexpected increase in US crude inventories could further contribute to the pair's recent up-move.
From technical perspective, this is the first significant rebound for the pair after its relentless fall of over 2200-pips from Jan. high level of 1.4690 and hence, seems more likely to get extended in the near-term. However, hourly RSI reading above 70 warrants some consolidation or a minor dip before the pair resumes its upward trajectory.
Technical levels to watch
From current levels a dip towards 1.3100-1.3090 is likely to get bought into and a drop below this immediate support might now be limited at 1.3040 level.
On the upside, a bullish spike beyond day's peak level to 1.3185-90 might attract some supply in the near-term. However, a clear break through this supply zone would open room for further near-term appreciation towards its next major resistance near 1.3270-80 zone.