USD/CAD sinks to lows post-EIA

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 Canadian dollar has now recovered the smile vs. the greenback, dragging USD/CAD to session lows in the 1.3340 area.

    USD/CAD lower on EIA, eyes on FOMC

    Spot gained downside pressure after the EIA’s weekly report showed crude oil inventories have increased by more than 1.3 million barrels during last week, less than initially forecasted. Additionally, gasoline inventories decreased by nearly 0.750 million barrels, less than the 2.34 drop expected.

    In the meantime, USD keeps the solid performance this week, taking the pair to fresh tops above the 1.3400 handle earlier in the session, albeit losing upside momentum afterwards.

    The pair will remain under scrutiny later in light of the upcoming FOMC gathering and subsequent press conference by Chairwoman Janet Yellen.

    USD/CAD significant levels

    As of writing the pair is down 0.01% at 1.3354 facing the next support at 1.3164 (2016 low Mar.11) ahead of 1.3034 (low Nov.3 2015) and finally 1.3000 (psychological level). On the other hand, a break above 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).

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