USD/CAD consolidates the upside near 9-month highs

Broad based US dollar strength remains the key theme so far this week, driving USD/CAD to the highest levels since Feb this year near 1.3560 region, before retracing a part of the rally to now trade  below the mid-point of 1.35 handle.

USD/CAD awaits Canadian CPI

Currently, the USD/CAD pair advances 0.19% to 1.3546, retreating from nine-month tops posted at 1.3565 in the last hour. The USD/CAD pair trims gains, although remains strongly bid amid persistent demand for the US dollar, in response to bullish comments by Fed Chair Yellen on the interest rates outlook.

While weaker oil prices on the back of a broadly stronger US dollar, dents the sentiment around the resource-linked Loonie, which underpins USD/CAD.

The bulls are now seen consolidating the upside as all eyes now remain on the Canadian CPI and Fedspeaks lined up for release later in the NA session.

USD/CAD Technical Levels

To the upside, the next resistances are seen near 1.3565 (9-month highs) and 1.3600 (psychological levels) and from there to 1.3615 (daily R3). To the downside, immediate support might be located at 1.3503 (5-DMA) and below that at 1.3483 (daily pivot) and at 1.3433 (20-DMA).

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