USD/CAD extends up-move further beyond 1.3400 handle

The USD/CAD pair maintained bid tone for the fifth trading session and is attempting to build on to its momentum back above 1.3400 handle.

Currently hovering around 3-week high near 1.3410-15 region, the US Dollar held on to last week's strong gains led by hawkish FOMC forecast and helped the pair to decisively clear 50-day SMA strong resistance. Moreover, a bullish consolidation witnessed around oil prices, with WTI crude oil trading with mild weakness near $53.00/barrel mark, has failed to provide any respite for the commodity-linked currency - Loonie. 

From technical perspective, the pair last week rebounded sharply from the vicinity of the very important 200-day SMA. A subsequent move above 50-day SMA, and 1.3400 handle, now seems to have confirmed bullish bias and hence, the pair is likely to extend its near-term bullish trajectory.

Later during NA session, Canadian monthly Wholesale Sales data would be looked upon for short-term trading opportunities ahead of this week's important macro data from the US and Canada.

Technical levels to watch

Immediate resistance, beyond 1.3420 level, is pegged at 1.3440 level above which the pair seems to head towards 1.3480 resistance en-route 1.3500 psychological mark. On the downside, sustained weakness below 1.3400 handle now seems to find support at 50-day SMA near 1.3345 region, which if broken is likely to drag the pair back below 1.3300 handle towards testing its next support near 1.3280 region.