USD/CAD hits fresh daily highs, still down for the week

USD/CAD recently printed a fresh daily high but is still consolidating important weekly gains. The pair is rising for the second day in a row, on the back of a decline in crude oil prices and a recovery of the US dollar. 

USD/CAD above 1.3130

The pair recently broke above 1.3130 and climbed to 1.3142, hitting the highest since Wednesday. It was trading at 1.3135, up 50 pips for the day but down almost two hundred pips below the level it had a week ago. 

The Canadian dollar and the Mexican peso are among the top performers over the week. 

Technical perspective

After approaching 1.3400 last week, the pair dropped back toward 1.3000 but the loonie lost strength and it was unable to consolidate below 1.3100. The area around 1.3000 continues to be an important short-term support, and a break lower is needed in order to clear the way to more losses. 

On the upside, a move back above 1.3350 could boost the pair for a test of the 1.3600 area, where November and December highs area located. A break of that barrier, could open the doors to more gains.