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USD/CAD hits new session highs above 1.3950

The US dollar extends its upbeat momentum versus its Canadian counterpart in the late-Asian trades, now pushing USD/CAD towards the mid-point of 1.39 handle.

USD/CAD holds above all hourly MAs

Currently, the USD/CAD pair rises 0.17% to 1.3950, flirting with fresh session highs printed at 1.3955 last minutes. The CAD pair extends higher for the second straight session as the oil rout extends amid omnipresent oversupply concerns and dwindling expectations of OPEC/non-OPEC producers meeting in a bid to bolster prices. The US oil is down -1.50% around $27, while the Brent is losing -0.50% to trade near 30.70 region. Oil is Canada’s top export product.

Moreover, the greenback seems to be paring Yellen-induced losses and poses a modest recovery against its major peers, following a 3-day slide to fresh four-month lows. Later today, the focus once again will be on Yellen’s testimony before the Senate, while the housing data from Canada and the weekly unemployment claims report from the US will provide fresh incentives on the pair.

USD/CAD Technical Levels

To the upside, the next resistances are seen near 1.3961/80 (Feb 9 & 8 High) and 1.4000 (round number). To the downside, immediate support might be located at 1.3900 (1h 50-SMA/ 10-DMA) and below that 1.3883 (1h 100-SMA).

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