USD/CAD flirts with 1.3450, Canadian GDP, OPEC - key

The US dollar extends its upbeat momentum versus its Canadian counterpart for the second straight session this Wednesday, now pushing USD/CAD to the mid-point of 1.34 handle.

USD/CAD heading towards key resistance at 1.3470

Currently, the USD/CAD pair is last seen exchanging hands at 1.3446, up +0.10% so far, extending its overnight recovery from 1.3415 region. The renewed strength in the major is largely attributed to resumption of post-GDP rally in the US dollar against its main competitors, as markets prefer to hold the reserve currency amid uncertainty surrounding oil markets, with all eyes now focused on the much-awaited OPEC output cut decision due later tonight.

Meanwhile, the Loonie fails to buy into the renewed buying interest seen around oil prices, as the CAD bulls remain on the back foot in anticipation of the OPEC decision-related massive volatility likely to be witnessed across the financial markets.

In the meantime, the spot could get influence somewhat by a flurry of economic releases from the NA calendar, including the US ADP jobs and Canadian GDP report.

USD/CAD Technical Levels

To the upside, the next resistances are seen near 1.3470 (5, 10 & 20-DMA confluence) and 1.3500 (zero figure) and from there to1.3566 (Nov 18 high). To the downside, immediate support might be located at 1.3421 (daily low) and below that at 1.3400 (round figure) and at 1.3374 (Nov 22 low).