USD/CAD reaches fresh 8-month highs

USD/CAD extended gains to fresh 8-month highs on Friday as the greenback retains a firm tone amid expectations that any fiscal stimulus implemented by Trump administration would lead to a faster pace of monetary tightening.
     
USD/CAD broke above previous weekly highs and stretched to a peak of 1.3541 in recent dealings. A drop in oil prices also helped to push the pair higher. At time of writing, USD/CAD is trading at 1.3525, recording a 0.43% daily gain.

On the data front, the Michigan consumer sentiment index is due, while speeches from Fed’s Fischer and BoC’s Poloz are expected.

USD/CAD technical levels

In terms of technical levels, next resistances are seen at 1.3586 (Feb 29 high), 1.3600 (psychological level) and 1.3796 (Feb 4 low). On the flip side, supports could be faced at 1.3405 (10-day SMA), 1.3336 (20-day SMA) and 1.3263 (Nov 9 low).