USD/CAD advances to fresh session highs above 1.2740, eyes on FOMC


  • USD/CAD is pushing higher ahead of the American session.
  • US Dollar Index advances to 90.50 area ahead of FOMC's policy announcements.
  • WTI trades with modest losses near $52.50 on Wednesday.

After spending the Asian session in a very tight range below 1.2700, the USD/CAD pair gained traction during the European trading hours and touched a fresh daily high of 1.2744. As of writing, the pair was up 0.4% on the day at 1.2740.

DXY gathers bullish momentum on Wednesday 

The renewed USD strength seems to be fueling USD/CAD's climb on Wednesday. The risk-averse market environment, as reflected by sharp declines in major European equity indexes and the US stock futures, is providing a boost to the safe-haven greenback. At the moment, the US Dollar Index (DXY) is up 0.37% on the day at 90.49 and the S&P 500 Futures are down nearly 1%.

In the meantime, the barrel of West Texas Intermediate (WTI) is losing 0.35% on the day near $52.50, making it difficult for the commodity-related loonie to stay resilient against the USD.

Later in the day, the Durable Goods Orders data will be featured in the US economic docket. However, the market reaction is likely to be muted with investors remaining on the sidelines ahead of the US Federal Reserve's policy announcements. 

Previewing the FOMC's January meeting, "the Federal Reserve is set to leave its bond-buying plan unchanged and signal a steady hand," noted FXStreet analyst Yohay Elam. "By calling for fiscal stimulus, the bank may hint it is ready to scoop up debt, boosting shares."

Fed Preview: Fearing market froth or boosting Biden's stimulus? Three scenarios.

Technical levels to watch for

USD/CAD

Overview
Today last price 1.2737
Today Daily Change 0.0044
Today Daily Change % 0.35
Today daily open 1.2693
 
Trends
Daily SMA20 1.271
Daily SMA50 1.2813
Daily SMA100 1.3007
Daily SMA200 1.3287
 
Levels
Previous Daily High 1.2783
Previous Daily Low 1.269
Previous Weekly High 1.2799
Previous Weekly Low 1.259
Previous Monthly High 1.301
Previous Monthly Low 1.2688
Daily Fibonacci 38.2% 1.2725
Daily Fibonacci 61.8% 1.2747
Daily Pivot Point S1 1.2661
Daily Pivot Point S2 1.2629
Daily Pivot Point S3 1.2568
Daily Pivot Point R1 1.2754
Daily Pivot Point R2 1.2815
Daily Pivot Point R3 1.2847

 

 

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