USD/CAD flirts with 1.3700 as the greenback strengthens
- The US dollar bounces at 1.3650 and hits session highs above 1.3700.
- The dollar appreciates following a string of positive US figures.
- Looming concerns about rising COVID-29 cases remain supportive of the USD.
The US dollar has pushed higher against its Canadian counterpart during the American trading session, to hit session highs right above 1.3700 nearing Friday’s high, at 1.3715. The pair is on track to post a five-day winning streak after the release of upbeat US macroeconomic data that has strengthened the US dollar across the board.
The dollar appreciates on bright US data
The greenback has appreciated about 0.2% during the US session to regain lost ground after a sluggish day-opening and reach session highs at 1.3705.
Better than expected US pending home sales, which have increased 44.3% in May after a 21.8% decline in April, and the improvement on the Dallas Fed Manufacturing Index, which has posted a -6.1 reading against the market consensus of -59, have increased buying pressure on the US dollar.
On the other hand, the looming concerns regarding the global increase of COVID-19 infections and the possibility of a second wave of lockdown measures remain weighing on market sentiment, which favors the safe-haven US dollar against then higher-yielding CAD.
USD/CAD capped below 1.3715 resistance
From a technical point of view, the pair should break above June 26 high, at 1.3715 to increase bullish momentum and attack 1.3740 (June 1 high) and 1.3820 (May 29, 27 highs). On the downside, immediate support lies at 1.3645/50 (session lows) and below here, 1.3610/20 (Jun 25/26 lows) and 1.3520 (Jun 24 lows).
USD/CAD key levels to watch