USD/CAD targeting 100-DMA near 1.3270; Consumer Confidence positive at 114.8

Currently, USD/CAD is trading at 1.3262, up +0.62% or 82-pips on the day, having posted a daily high at 1.3262 and low at 1.3164.

The Canadian dollar kept struggling against the greenback as the Consumer Confidence printed 'a better than expected' figure at 114.8 that fueled dollar bulls to 'load the boat' against the Loonie. Furthermore, the pair diluted in the short-term the bearish bias that clouded traders' perspective as it navigated waters below the 1.32 handle.

As of writing, the currency pair accumulated 180-pips over the last 2-consecutive trading sessions. On the other hand, the BoC Rate Statement is next on the spotlight as traders prepared themselves to evaluate and adjust as necessary if Governor Poloz remains dovish or shift to hawkish.

DXY inter-markets: not so ‘phenomenal’

Historical data available for traders and investors indicates during the last 9-weeks that USD/CAD pair, a commodity-linked currency, had the best trading day at +1.71% (Jan.18) or 227-pips, and the worst at -1.02% (Jan.17) or (133)-pips. Furthermore, the US 10yr treasury yields have traded from 2.37% to 2.34%, down -0.75% on the day at 2.34% or -0.0178.

Technical levels to watch

In terms of technical levels, upside barriers are aligned at 1.3212 (50-DMA), then at 1.3270 (100-DMA) which seems to build a 'Walls of Troy' multi-year resistance region since July 2015 and finally above that at 1.3380 (high Jan.20). While supports are aligned at 1.3082 (low Feb.27), later at 1.2968 (low Jan.31) and below that at 1.2850 (low Sep.8).

On the other hand, Stochastic Oscillator (5,3,3) seems to head north. Therefore, there is evidence to expect further US dollar gains in the near term.The pair requires a close and open above the 200-DMA near 1.3140 to dilute any bearish pressure that could drag it lower back to the 1.3010 level.

Gold vs. US dollar; capped near 200-DMA vs. short-seller squeeze?