USD/CAD: bull's last efforts in NY capped at familiar top side

USD/CAD rally capped at familiar resistance.
USD/CAD now awaits FOMC.

Ross J Burland FXStreet

USD/CAD spiked on the back of oil but has run into some offers into the close. Currently, USD/CAD is trading at 1.2872, up 0.13% on the day, having posted a daily high at 1.2894 and low at 1.2812.

FOMC Preview: big noise, little substance?

USD/CAD managed a push over the 1.12880 resistance and is holding in 8th Dec-tops territory at least in a bullish trend that is showing little signs of a meaningful correction at this juncture, albeit just a session or two away from the FOMC outcome where a rate hike is fully priced in.

Domestic risks ahead?

Meanwhile, the domestic risk is limited ahead of Thursday’s speech from BoC Gov. Poloz, on the topic of ‘Issues keeping the Governor awake at night’. "NAFTA negotiations are scheduled to continue through Friday and near-term risk centres on Wednesday’s Fed meeting. The balance of risk appears to favor continued consolidation," noted analysts at Scotiabank

USD/CAD levels

USD/CAD has yet to break out of its range from late October, with movement roughly bound between 1.2620 and 1.2920. "Momentum is neutral and trend strength is muted. We look to near-term support between 1.2800 and 1.2780," the analysts at Scotiabank argued

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

EUR/USD looks weak below 1.1800

EUR/USD has slipped back under pressure, breaking through the 1.1800 support and drifting towards the weekly lows near 1.1770 ahead of the opening bell in Asia. The move reflects renewed strength in the US Dollar, with steady geopolitical tensions keeping its demand firm. Moving forward, the release of the German labour market report and flash inflation figures should keep European investors entertained on Friday.

GBP/USD threatens the 200-day SMA near 1.3440

GBP/USD rapidly leaves behind Wednesday’s strong advance, coming under heavy pressure and retesting the 1.3440 zone, where the critical 200-day SMA is located. Cable’s deep pullback follows the strong gains in the Greenback, while investors continue to pencil in a potential BoE rate cut in March.

Gold trims gains, slips back to around $5,170

Gold is now facing some downside pressure, hovering around the $5,170 region on Thursday. The yellow metal surrenders part of its earlier gains on the back of the resurgence of the buying interest in the Greenback. In the meantime, geopolitical tensions in the Middle East continue to limit the downside potential for now.