USD/CAD clings to strong gains near 6-week tops, around mid-1.3100s

   •  US Q3 GDP comes in better than expected but offset by the weaker price index.
   •  Sliding crude oil prices continue to weigh on Loonie and remain supportive.

The USD/CAD pair held on to its strong gains near six-week tops, albeit seemed struggling to build on the momentum post-US macro data.

According to the advance report, released by the US Bureau of Economic Analysis this Friday, the US GDP is estimated to have grown by 3.5% annualized pace during the third quarter of 2018. The reading was well below the previous quarter's strong reading of 4.2% but was still better than market expectations. 

The US Dollar, however, failed to capitalize on stronger headline figures as the same was negated by softer GDP price index, falling to 1.4% in Q3 as compared to 3.3% previous and 2.1% expected. Adding to the disappointment, the quarterly core PCE index also eased more than expected to 1.6% in Q3 from 2.1% in the previous quarter.

Meanwhile, a weaker tone around crude oil prices continued weighing on the commodity-linked currency - Loonie and helped limit any immediate sharp downfall. This coupled with the prevalent risk-off mood further supported the greenback's relative safe-haven status against its Canadian counterpart. 

Nevertheless, at current levels, the pair remains on track to end on a positive note, marking the fourth consecutive week of gains and the highest weekly close since early September. 

Technical levels to watch

Immediate resistance is pegged near the 1.3170-75 region, above which the pair seems all set to surpass the 1.3200 handle and test the 1.3225-30 supply zone. On the flip side, the 1.3110-1.3100 area now seems to protect the immediate downside and is followed by 100-day SMA support near the 1.3075 region, which if broken might prompt some fresh selling and accelerate the fall back towards the key 1.30 psychological mark.