USD/CAD rises to near 2-week highs, above 1.35 mark amid tumbling oil prices

The USD/CAD pair continued gaining traction for the fifth consecutive session on Friday and built on to its move back above the key 1.35 psychological mark. 

Spot has managed to maintain positive tone so far this week and extended last week's recovery move from over one-month lows below the 1.3400 handle. Sentiment surrounding the commodity-linked currency - Loonie, seems to have turned bearish in wake of tumbling oil prices. 

Disappointment from OPEC production deal extension has now dragged WTI crude oil prices to fresh three-week lows near mid-$47.00s and lifted the pair back closer to its immediate strong hurdle near 1.3535 level.

Adding to this, Thursday's strong private sector jobs data confirmed an eventual Fed rate-hike action this month and remained supportive of the pair's steady up-move to 8-day highs. 

Meanwhile, upbeat ADP report also seems to have lifted expectations today's official jobs report (NFP) and hence, a follow through up-move back towards the 1.3600 handle now seems a distinct possibility.

Technical levels to watch

On a sustained break through 1.3540 immediate resistance, the pair is likely to dart towards the 1.3600 handle before appreciating further towards its next resistance near 1.3645-50 region. 

On the downside, any pull-back now seems to find immediate support near 1.3510-1.3500 region, below which the pair is likely to accelerate the slide back towards 1.3460-55 support area ahead of 1.3430-25 region.