USD/CAD climbs to 7-week tops, sits comfortably above 1.3200 mark

• USD/CAD added to its recent gains and climbed to fresh multi-week tops.
• The ongoing slide in oil undermined the loonie and remained supportive.
• Investors now eye Advance US Q4 GDP growth figures for a fresh impetus.

The USD/CAD pair built on its momentum beyond the 1.3200 round-figure mark and climbed to fresh seven-week tops during the early European session on Thursday.

A combination of factors helped the pair to capitalize on the recent positive momentum and gain some follow-through traction for the second consecutive session on Thursday – also marking its fourth day of a positive move in the previous five.

Bulls remain in control amid weaker oil prices

Concerns about the economic impact of the deadly coronavirus led to a fresh wave of the global risk-aversion trade on Thursday. The flight to safety, coupled with signs of a strengthening economy continued lending support to the US dollar.

On the other hand, the ongoing slide in crude oil prices, now down over 1.5% for the day on the back of a bigger-than-expected increase in the US stocks, undermined demand for the commodity-linked currency – the loonie – and remained supportive.

Currently hovering around the 1.3220-25 region, the pair has now moved closer to the very important 200-day SMA, above which bulls are likely to seize near-term control and might aim back towards reclaiming the 1.3300 round-figure mark.

Moving ahead, Thursday's US economic docket – highlighting the release of the Advance Q4 GDP growth figures – will now be looked upon to grab some meaningful trading opportunities later during the early North-American session.

Technical levels to watch