USD/CAD hovering over 1.4150, BoC eyed

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 7, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Edinburgh) - The collapse in crude oil prices continues to weigh on the Canadian dollar, helping USD/CAD to consolidate the upside above the 1.4100 handle.

    USD/CAD in fresh cycle highs

    The pair remains in levels last seen in 2003 in the mid-1.4100s mainly bolstered by the weakness surrounding crude oil prices – WTI trading in sub-$33.00 levels at the time of writing.

    Data wise across the pond, US Initial Claims are only expected today (275K exp.) while the speech by BoC’s S.Poloz will grab investors’ attention in light of the BoC meeting on January 20th.

    USD/CAD key levels

    At the moment the pair is up 0.46% at 1.4147 facing the next resistance levels at 1.4166 (high Aug.22 2003) ahead of 1.4196 (high Jul.23 2003) and then 1.4672 (high Apr.24 2003). On the downside, a breach of 1.3633 (3-month uptrend) would target 1.3513 (55-day sma) and then 1.3364 (100-day sma).
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