USD/CAD in session highs near 1.0950

FXStreet (Edinburgh) - The greenback is extending its upbeat momentum on Tuesday, lifting the USD/CAD to post intraday highs in the vicinity of 1.0950.

USD/CAD follows the US dollar

Spot continues to consolidate in the upper-1.0900s although the 1.1000 barrier still remains elusive for USD bulls. Despite the almost non-existent docket in the US economy, the pair managed to gather extra steam after the Business Optimism index tracked by NFIB surprised to the upside during July, posting 95.7 vs. 95.3 forecasted and up from June’s 95.0. In the opinion of Camilla Sutton, Chief FX Strategist at Scotiabank, “the core CAD drivers suggest that there are limits to CAD weakness from here. In USDCAD terms, a rally above 1.10 is unlikely to extend dramatically and sustainably above there. We expect USDCAD to remain comfortable trading either side of 1.10, as it catches its breath from recent activity”.

USD/CAD significant levels

As of writing the pair is up 0.24% at 1.0948 with the immediate resistance at 1.0985 (high Aug.8) followed by 1.0986 (high Aug.6) and finally 1.1007 (high May 2). On the flip side, a breakdown of 1.0922 (10-d MA) would target 1.0903 (low Ago.7) en route to 1.0898 (low Aug.5).