USD/CAD wobbles around 1.3400 ahead of BoC

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 9, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    The Canadian dollar is clinging to its daily gains vs. its American neighbor on Wednesday, with USD/CAD gyrating around the key 1.3400 handle.

    USD/CAD focus on the BoC

    The recent upside in the pair seems to be taking a breather today, as spot is looking to stabilize around 1.3400 the figure after hitting overnight tops near 1.3450. The greenback is surrendering part of yesterday’s strong gains after bottoming out in sub-1.3300 levels, or 4-month lows, in a context favourable to the risk-associated space.

    Absent releases in the US docket and with crude oil prices extending its sideline pattern, the BoC monetary policy meeting will be in the limelight later in the NA session. However, expectations of a change in the recent tone by the central bank remain muted, as no press conference or MPR are expected today.

    USD/CAD significant levels

    As of writing the pair is retreating 0.08% at 1.3406 and a break below 1.3307 (200-day sma) would open the door to 1.3259 (2016 low Mar.7) and finally 1.3034 (low Nov.3 2015). On the other hand, the immediate resistance aligns at 1.3603 (20-day sma) followed by 1.3679 (100-day sma) and then 1.3861 (high Feb.24).
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