USD/CAD surges past 1.32 and 200-DMA barriers

Upbeat sentiment surrounding the greenback helped the USD/CAD pair to surge past 1.3200 handle and jump to weekly highs.

Currently trading around 1.3225 level, the pair moved back above the very important 200-day SMA resistance and touched 6-day high level of 1.3233 amid broad based US Dollar strength following the release of weekly jobless claims data. 

Meanwhile, a sharp jump in Canadian building permits during the month of August and buoyant sentiment surrounding crude oil (now trading above $50.00/barrel mark) failed to extend any support to the commodity-linked currency - loonie and the bulls maintained their charge over the major. 

Investors' focus, however, would remain on Friday's non-farm payrolls data for the month of September and would be looked upon to determine the pair's trajectory in the near-term.

Technical levels to watch

From current levels, momentum above 1.3245-50 immediate resistance should now assist the pair toward September monthly high barrier around 1.3280 region before darting towards 1.3300 round figure mark.

On the flipside, 1.3190 level now becomes immediate support, which if broken seems to drag the pair immediately towards Wednesday's low support near 1.3155 level and the downslide could further get extended towards 1.3125-20 horizontal support.