USD/CAD gains further beyond 1.29 handle, spikes to fresh 1-month tops

   •  A modest retracement in oil prices weigh on Loonie and remain supportive.
   •  Fed Chair Jerome Powell's comments provides a minor boost in the last hour.
   •  Focus remains on Trump’s decision on the Iran nuclear deal, due later today.

The USD/CAD pair built on overnight strong gains and jumped to the top end of its two-week-old trading range, comfortably above the 1.2900 handle.

A modest retracement in crude oil prices weighed on the commodity-linked currency - Loonie and continued driving the pair higher through the Asian session. Further gains, however, are likely to remain capped amid a subdued US Dollar price action. 

Meanwhile, the pair gained some additional traction after the Fed Chair Jerome Powell said that the Fed's actions should not surprise markets and provided a minor boost to the US Dollar. Powell, speaking at the High Level Conference on the International Monetary System, in Zurich, was also noted saying that markets are reasonably well aligned with 'dot-plot' but some investors, institutions may not be well positioned for Fed hikes.

Later in the day, the US President Donald Trump's decision on Iran nuclear deal has the potential to infuse a fresh bout of volatility across global financial markets and hence, should produce some meaningful trading opportunities.

Technical levels to watch

Any subsequent move is likely to confront resistance near the 1.2940-45 region, above which the pair seems all set to aim towards reclaiming the key 1.30 psychological mark. On the flip side, retracement back below the 1.2900 handle now seems to find immediate support near the 1.2875 level, which if broken could accelerate the slide back towards retesting 50-day SMA support, currently near the 1.2835 region.