USD/CAD struggling for direction, stuck in a range around mid-1.3300s
|The USD/CAD pair seems have entered a consolidative phase and has been confined within a broader trading range above the 1.3300 handle.
Currently trading around mid-1.3300s, the pair has managed to hold above 100-day SMA support but has been struggling to clear its immediate horizontal resistance near 1.3375 area. Also on Monday, the pair did break lower to 1.3300 neighborhood but recovered higher to wipe out early day losses despite of better-than-expected Canadian Wholesale Sales data for January.
The recovery, however, lacked momentum and conviction amid a sharp recovery in WTI crude oil, which was seen supporting demand for the commodity-linked currency - Loonies.
On Tuesday, a follow through recovery move in oil prices has kept a lid on the pair's up-move. Moreover, a muted US Dollar price action, against the backdrop of perceived less hawkish Fed policy outlook, has also failed to provide any fresh impetus and has been a key factor for the pair's range-bound price action within 40-pips narrow trading range.
Moving ahead, market participants now look forward to comments from the New York Fed President William Dudley. Later during early NA session, the release of Canadian monthly retail sales data and the US current account deficit figures, would be looked upon for some short-term trading opportunities.
Technical levels to watch
On the upside, 1.3370-75 area remains immediate resistance, which if cleared is likely to lift the pair towards reclaiming the 1.3400 handle, en-route 1.3425-30 horizontal resistance.
On the downside, sustained weakness back below 1.3315-10 immediate support now seems to drag the pair back below 100-day SMA support near 1.3295 region towards retesting 1.3275 support area ahead of mid-1.3200s.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.