USD/CAD continues scaling higher, eyeing 1.36 mark ahead of US data

The Canadian Dollar remained on the back-foot against its US counterpart, helping the USD/CAD major to maintain its strong bid tone at yearly tops near 1.3565-70 band. 

The pair continued gaining traction for the second straight session on Tuesday in wake of overnight news of the Trump's administration plans to impose 20% tariff on soft lumber imports from Canada. Also collaborating to the pair's up-move was the US President Donald Trump's promise for a similar tax on Canadian milk. 

Adding to this, a minor US Dollar up-tick, led by surging US treasury bond yields, further contributed to the pair's strong up-surge. 

Meanwhile, the prevalent bearish sentiment surrounding oil markets, with WTI crude oil struggling to register any meaningful recovery after six consecutive days of losses, has failed to extend any support to the commodity-linked currency - Loonie, and stall the pair's ongoing up-surge to the highest level since late December.

Up next would be the US economic docket, featuring the release of House Price Index, CB's Consumer Confidence Index, New Home Sales data and Richmond Manufacturing Index, would now be looked upon for some fresh impetus. 

US: Consumer confidence is the key economic release today – Danske Bank

Technical levels to watch

Bulls would be eyeing for a follow through buying interest beyond 1.3575-80 area, above which the pair is likely to break through the 1.3600 handle and aim towards testing its next major hurdle near 1.3640-45 region en-route its next major hurdle near 1.3670-80 region.

On the flip side, any retracement below mid-1.3500s is now likely to find immediate support near 1.3525-20 area and is closely followed by an important psychological mark support at the 1.35 handle.