USD/CAD placed comfortably above 1.34 handle, near two-week tops

The USD/CAD pair was seen building on to its momentum further beyond the 1.3400 handle and spiked to near two-week high in the past hour.

A goodish recovery in the US treasury bond yields underpinned the greenback demand and helped the key US Dollar index to recovery from three-week lows, further supporting the strong bid tone surrounding the major.

The pair continued scaling higher despite of a modest recovery in oil prices, which tends to benefit the commodity-linked currency - Loonie. In fact, WTI crude oil has now reversed early losses to multi-day lows and is placed comfortably above mid-$53.00s but has failed to hinder the pair's ongoing up-ward trajectory from the 1.3265-60 area touched at the beginning of this week.

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Hence, investors on Wednesday will remain focused on the closely watch EIA report on the US crude oil stockpiles for some fresh impetus. The Fed’s Beige Book is also due for release later during the NY trading session.

Technical levels to watch

A follow through momentum beyond mid-1.3400s is likely to lift the pair towards 1.3480 intermediate resistance, en-route the key 1.35 psychological mark hurdle. 

On the downside, the 1.3400 handle now becomes immediate support to defend, which if broken seems to drag the pair back towards 1.3375 horizontal support before the pair eventually drops back to 1.3330-25 support.