USD/CAD testing weekly tops near 1.2870 ahead of US ISM

• The pair prolongs the upside to the vicinity of 1.2870, weekly peaks.
• DXY trades in multi-month tops beyond the 92.00 handle.
• Spot looks to ISM Manufacturing, tariffs, US yields.

The greenback extends the march higher today vs. its Canadian neighbor, pushing USD/CAD to re-test weekly tops in the 1.2860/70 band.

USD/CAD focused on US data

Spot is advancing for the second session in a row on Tuesday, moving to the top of the weekly range in the 1.2870 area and always on the back of the generalized buying bias around the buck.

In fact, the greenback is navigating fresh 4-month tops vs. its rival currencies above the 92.00 handle measured by the US Dollar Index in spite of US yields have lost some upside momentum as of late.

Looking ahead, US ISM Manufacturing will be in centre stage later in the NA session seconded by Construction Spending. In Canada, GDP figures for the month of February are also expected.

USD/CAD significant levels

As of writing the index is gaining 0.23% at 1.2874 and a breakout of 1.2899 (high Apr.25) would aim for 1.2927 (38.2% Fibo of the 2017 drop) and finally 1.2946 (high Apr.2). On the downside, the next support is located at 1.2799 (10-day sma) followed by 1.2722 (38.2% Fibo of the 2017 drop) and then 1.2631 (200-day sma).