USD/CAD building on to its gains above 1.3000 psychological mark

A fresh bout of US Dollar buying assisted the USD/CAD pair to build on to its gains above 1.3000 psychological mark and the pair has now jumped to a 4-day high to currently trade near session high level of 1.3035. 

Sustained weakness in crude oil prices helped the pair to move back above an important moving averages (50-day and 100-day SMAs) confluence resistance near 1.2950-60 region. 

The latest leg of sharp up-move seems to have been led by some short-covering ahead of the US housing market data, which if delivers a positive surprise would add to the bullish sentiment surrounding the greenback. 

Following last week's better-than-expected retail sales and industrial production data, stronger housing data would further reinforce the underlying strength of the US economic recovery and resurface expectations of any imminent Fed rate-hike, sooner rather than later.

Technical levels to watch

On a sustained move above 1.3050 level, the pair could be immediately headed beyond 1.3100 round figure mark towards testing 1.3130-40 resistance, above which the bullish momentum could get extended towards its next major resistance near 1.3190-1.3200 region.

Meanwhile on the downside, weakness back below 1.3000 psychological mark now seems to find strong support near 1.2960-50 resistance break-point. Failure to hold this immediate support now seems to drag the pair back below 1.2900 level before heading towards testing a short-term ascending trend-line support near 1.2830 level.