USD/CAD jumps to fresh multi-month tops, nearing 1.31 mark
• Technical buying helps build on the overnight bullish break through 1.30 handle.
• Traders largely shrugged off renewed USD selling/positive crude oil prices.
The USD/CAD pair finally broke out of its consolidative range and jumped to fresh multi-month tops, now eyeing the 1.3100 handle.
The pair's sudden spike over the past hour or so lacked any fundamental trigger and hence, could be attributed to some follow-through technical buying, especially after yesterday's bullish breakthrough the key 1.30 psychological mark.
Meanwhile, the market seems to have largely ignored the prevalent weaker tone surrounding the US Dollar. Even mildly positive crude oil prices, which tend to underpin demand for the commodity-linked currency - Loonie, did little to stall the pair's upsurge to the highest level since late June.
Today's economic docket - featuring the release of housing market data, industrial production figures and Prelim UoM Consumer Sentiment from the US, along with Canadian manufacturing sales - might provide some trading impetus but is unlikely to hinder the ongoing bullish momentum.
Technical levels to watch
Sustained momentum beyond the 1.3100 handle could get extended towards 1.3155-60 hurdle en-route the 1.3200 round figure mark. On the flip side, mid-1.3000s now seems to protect the immediate downside, which if broken could accelerate the slide back towards retesting the key 1.30 psychological mark.