USD/CAD hits fresh 2-week highs

USD/CAD broke above 1.3020 and rose to 1.3047 reaching the strongest level since August 11. The pair then pulled back modestly and it was trading at 1.3025, up 25 pips from Friday’s closing price.

Among commodity currencies the loonie is the worst performer weakened by a decline in crude oil price. The WTI is back below $47.00.

Today’s gains follow Friday’s rally when the USD/CAD climbed above an important short-term resistance located around 1.2960. Also price rose back above the 20-day moving average.

The rally was boosted by a stronger US dollar across the board after Janet Yellen speech, that left doors open to a September rate hike from the Federal Reserve. During the current week the main economic event will be the official US employment report to be released on Friday.

USD/CAD technical levels

To the upside, resistance levels might be located at 1.3045/50 (daily high), 1.3080 (Aug 11 high) and 1.3100 (July 28 low). On the opposite direction, support might be seen at 1.2985 (daily low), 1.2955/60 (Aug 24 high) and 1.2940 (Aug 25 high).