USD/CAD printing highs near 1.3400 ahead of FOMC

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 16, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The greenback is extending the positive note vs. its Canadian neighbour on Wednesday, now pushing USD/CAD to the area of 1.3480/85.

    USD/CAD firmer ahead of US data

    Spot is extending its rebound from recent lows in sub-1.3200 levels (Friday), trading closer to the 1.3400 handle as CAD lost some momentum in response to a softer performance of crude oil prices. Furthermore, the greenback keeps regaining ground lost, adding to the pair’s upside.

    The pair will remain under pressure later today, as US CPI figures and the FOMC meeting will take centre stage. Despite market participants expect no rate hike today, the (priced in?) hawkish tone by the Committee could be supportive of the dollar, paving the way for a continuation of the upside bias.

    USD/CAD significant levels

    As of writing the pair is gaining 0.20% at 1.3382 and a breakout of 1.3466 (20-day sma) would aim for 1.3525 (23.6% Fibo of 1.4692-1.3164) and then 1.3685 (100-day sma). On the flip side, the immediate support aligns at 1.3164 (2016 low Mar.11) ahead of 1.3034 (low Nov.3 2015) and finally 1.3000 (psychological level).

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