USD/CAD building on to its gains above 1.3100

The USD/CAD pair is seen building on to its gains above 1.3100 handle and is currently trading at session peak level around 1.3120 region. 

Slide in crude oil prices, back to two-month lows, is weighing on commodity-linked currency - loonie. Moreover, upbeat sentiment surrounding the US Dollar, on increasing prospects of an imminent Fed rate-hike later during this year, is also extending support to the pair's ongoing bullish momentum. 

For current trading week, the pair is now trending higher for fourth consecutive day and has now moved within striking distance of a multi-week high level of 1.3140 touched in the previous week. 

Later during NA trading session, Canadian CPI report and monthly retail sales data would be in focus and would assist trader to determine the pair's direction in the near-term. 

Technical levels to watch

Momentum above multi-week highs resistance near 1.3140 region seems to immediate boost the pair towards 1.3188 (May 24 high), above which the pair is likely to head towards testing March highs resistance near 1.3280-1.3300 region.

On the flip side, drop back below 1.3100 handle, and a subsequent weakness below session low around 1.3070 region, has the potential to drag the pair back towards 1.3020-1.3000 important psychological mark.