USD/CAD jumps to fresh session tops ahead of US releases

After an initial wobble, the USD/CAD pair regained traction and has now jumped to fresh session tops near 1.3725 region ahead of the US macro data.

The pair's latest leg of up-move could be attributed to a modest retracement in crude oil prices, which tends to dent demand for the commodity-linked currencies. In fact, WTI crude oil has now slipped further below the $48.00/barrel mark and helped the pair to move back above the 1.3700 handle. 

   •  Goldman Sachs: A potential US border-adjusted tax could send WTI to $ 65

Adding to this, a pick-up in the US Dollar demand, despite of retracing US treasury bond yields, further collaborated to the pair's up-move in the past hour or so. 

The pair, however, has held within previous session's trading range as investors now look forward to the US economic docket, featuring the release of inflation figures, monthly retails sales data and Prelim UoM Consumer Sentiment index for some fresh impetus. 

Also in focus would be speeches by couple of FOMC members - Chicago Fed President Charles Evans and Philadelphia Fed President Patrick Harker, which should influence market expectations over June Fed rate-hike action and help traders to grab some short-term momentum play. 

   •  CAD: On the back foot, for now – Nomura

Technical levels to watch

Immediate resistance on the upside is pegged near 1.3745-50 area, which is followed by resistance at 1.3770 level (yesterday's swing high). A follow through buying interest has the potential to lift the pair beyond the 1.3800 handle towards testing its next major hurdle near 1.3855-60 region.

On the flip side, 1.3690-80 zone now seems to have emerged as immediate support, which if broken is likely to accelerate the slide further towards weekly lows support near 1.3650-45 area before the pair eventually drops to test its next support near 1.3615-10 region.