USD/CAD hovers near fresh highs

FXStreet (Mumbai) - USD/CAD advanced to fresh session highs in the late-Asian session, hovering close to two-week highs as traders sought to profit-taking after the weakness seen in US last session on bearish US housing data.

USD/CAD lifted on a short-covering rally

Currently, the USD/CAD trades higher by 0.18% near fresh highs at 1.2599 levels, just shy of 1.2600 levels. The pair edged higher as traders locked-in gains after the recent weakness on downbeat US existing home sales data which dragged the US dollar lower.

Moreover, sliding oil prices also dented the resource-linked loonie, boosting the USD/CAD pair higher. The pair is likely to remain underpinned on a relatively stronger greenback across the board ahead of Yellen’s speech due later in the day.

USD/CAD Technical Levels

To the upside, the next resistance is located at 1.2624 levels and above which it could extend gains 1.2648 levels. To the downside immediate support might be located at 1.2546 (5-DMA) levels, below that at 1.2509 (20-DMA) levels.