Forex: USD/CAD reaching towards 0.9900

FXstreet.com (Barcelona) - The USD/CAD continues its strong bullish momentum over the European session, extending already some 80 pips since open and trading currently at a fresh 3-month high of 0.9880. The pair looks to be moving towards technical resistance at 0.9900, as it breaks out of a relatively tight channel for the first time in nearly a month.

So far, the current rally is due to modestly strong buying pressure for the US dollar today, however a decline in commodities prices has also weighed down the loonie. The front-month crude oil contract sunk nearly $5.00 yesterday before running into support around the $95.00/barrel level where it remains today.

Above it's current level, we expect further resistance to present itself around 0.9928 (200-Day MA), 0.9974 (Day High Mar 15) and 0.9988 (Daily High Feb 10). In the case of a downward reversal, support is placed at 0.9806 (Hourly Support Jun 16), 0.9773 (Hourly Low Jun 16) and 0.9683 (Lower 21-Day Bolli).