USD/CAD well-bid near six week tops, Canadian GDP in focus

The USD/CAD pair extended its strong recovery move from sub-1.3100 level and remained well-bid for the fourth consecutive session, near six week highs. 

Currently trading around 1.3355-60 region, persistent greenback buying interest continued fueling the pair's strong up-surge since the beginning of this week. Recent hawkish comments from various FOMC officials, increasing possibilities for a Fed rate-hike action in March, coupled with resumption of Trump-reflation trade have been key factors driving the greenback higher across the board, lifting the key US Dollar Index to seven-week and within striking distance of the 102.00 handle.

Moreover, a softer tone around oil markets, with WTI crude oil sliding further below $54.00/barrel mark, is also denting demand for the commodity-linked currency - Loonie, and collaborating to the pair's up-move on Thursday.

Even yesterday's BOC decision to maintain status-quo failed to provide any respite to the Canadian Dollar and the strong bullish sentiment surrounding the greenback remains an exclusive driver of the pair's ongoing upward trajectory. 

Focus now shifts to the today's economic release - monthly Canadian GDP growth figures and weekly jobless claims from the US, which might provide some fresh trading impetus during early NA session.

Technical levels to watch

Immediate upside resistance is seen near 1.3385-90 region (Jan. 20 high), above which the pair seems all set to head towards its next resistance near 1.3435-40 region, en-route 1.3500 psychological mark. On the downside, 1.3315 level now seems to act as immediate support, which if broken might drag the pair back towards 100-day SMA resistance break-point, now turned important support, near 1.3375 region.