USD/CAD surge past 1.3000 handle as oil breaks below $45.00 mark

A fresh bout of US Dollar buying interest helped the USD/CAD pair to surge past 1.3000 with ease and the pair is now trading close to session high level.

Continuous slide in crude oil prices and upbeat sentiment surrounding the greenback provided the required momentum to lift the pair back above 1.3000 psychological mark and an important moving-averages (50-day and 100-day SMAs) confluence resistance near 1.2960-65 region.

On Monday, despite of persistent weakness in crude oil prices the pair failed to sustain its up-move beyond 1.3000 handle and finally settled in negative territory as investors moved away from the perceived safety of the greenback on receding worries from a failed military coup attempt in Turkey.

While the pair might continue to derive its near-term movement from crude oil prices, investors will turn their focus to today's data from the US housing market later during NA trading session. Stronger-than-expected housing data would add to the upbeat sentiment surrounding the US economy and continue boosting the US Dollar in the near-term.

Technical levels to watch

On the immediate upside, momentum above 1.3080 (July 13 high) could get extended towards 1.3130-40 resistance (July 11-12 highs), above which the pair could head towards 1.3188 (May 24 high). On the flip side, weakness back below 1.2960-50 confluence support seems to drag the pair back towards 1.2960 support (last week's low) before aiming towards 1.2830 support (early July lows).