USD/CAD falls to fresh 2-week lows, farther below 1.3200 handle ahead of FOMC minutes
| • The selling pressure remains unabated for the fourth session despite a modest USD rebound.
• Retreating oil prices does little to dent demand for Loonie or stall the ongoing downfall.
• All eyes remain glued to the release of the latest FOMC meeting minutes, due later today.
The USD/CAD pair extended its steady decline through the mid-European session and refreshed two-week lows, around the 1.3180 region in the last hour.
The pair did attempt a minor rebound during the Asian session but was quickly sold into near the 1.3200 handle. The selling pressure remained unabated for the fourth consecutive session and seemed rather unaffected by a modest US Dollar uptick.
Meanwhile, a modest crude oil price retracement from 2019 highs, which tend to dampen demand for the commodity-linked currency - Loonie, also did little to lend any support or stall the ongoing slide to the lowest level since February 6.
With bullish traders shrugging off a combination of supporting factors, today's downfall could be solely attributed to some technical selling following the previous session's sustained weakness below 100-day SMA and a subsequent fall below the 1.3200 handle.
Further downside, however, is likely to remain cushioned as market participants are more likely to refrain from placing aggressive bets ahead of today's key event risk - the release of minutes from the January FOMC meeting, due later during the US session.
Technical levels to watch
A follow-through selling has the potential to continue dragging the pair further towards the very important 200-day SMA support, near the 1.3145-40 region. On the flip side, any attempted recovery beyond the 1.3200 handle now seems to confront fresh supply near the 1.3235 region (100-DMA), above which the pair is likely to aim towards reclaiming the 1.3300 round figure mark.
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