USD/CAD bouncing off lows, near 1.3320

Pablo Piovano FXStreet

The greenback is trading on the defensive vs. almost its G10 peers on Monday, with USD/CAD gaining some attention after bottoming out near 1.3310 during overnight trade.

USD/CAD finds support just above 1.3300

Spot seems to be resuming the leg lower after two straight sessions with gains, coming down from Friday’s tops near 1.3380 while last week’s lows near 1.3280 emerges as quite a decent support for the time being.

The continuation of the offered bias around the greenback and the divergence in policy from the Federal Reserve and the Bank of Canada stay as the main drivers behind the pair’s price action, while CAD remains decoupled from crude oil dynamics.

CAD speculative net longs have also retreated to multi-week lows in the week to March 14 as showed by the latest CFTC report, adding some weakness to CAD at the same time.

On the data front, Canadian Wholesale Sales are only due, seconded by US Chicago Fed National Activity Index along with the speech by Chicago Fed C.Evans (voter, dovish).

USD/CAD significant levels

As of writing the pair is down 0.18% at 1.3323 facing the immediate support at 1.3299 (100-day sma) followed by 1.3274 (low Mar.16) and finally 1.3216 (55-day sma). On the other hand, a break above 1.3379 (high Mar.17) would expose 1.3496 (high Mar.14) and finally 1.3536 (2017 high Mar.9).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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