USD/CAD consolidates the quick rebound post-BOC Poloz

Dhwani Mehta FXStreet

The USD/CAD pair stalled its rebound from BOC Poloz’s driven lows and now consolidates the upside amid resurgence of broad greenback strength as markets price-in a Dec Fed rate hike.

USD/CAD breaks above 5-DMA at 1.3309

Currently, the USD/CAD pair advances 0.41% to 1.3342, bouncing-off quickly from a downward spike to 1.3277, session troughs. The Canadian dollar is the worst performer amongst the commodity-currencies, as the BOC Governor Poloz’s latest comments continue to weigh on the domestic currency. Although the Governor failed to comments on the monetary policy, markets witnessed some sharp moves at Asia-open.

Moreover, resumption of broad based US dollar strength amid rising hopes for a Dec rate hike also drove the quick rebound in the CAD pair. Meanwhile, muted trading activity seen around oil prices continues to dampen the sentiment around the resource-linked Loonie.

Focus now shifts towards a string of US economic releases, including consumer confidence, and US API crude stockpiles report due later in the NA session.

USD/CAD Technical Levels

To the upside, the next resistances are seen near 1.3363 (daily R1) and 1.3398 (7-month highs) and from there to 1.3450 (psychological levels). To the downside, immediate support might be located at 1.3300 (round figure) and below that at 1.3277 (daily low) and at 1.3217/16 (10 & 20-DMA).

1. R3 1.3392
2. R2 1.3374
3. R1 1.3362
PP 1.3344
1. S1 1.3333
2. S2 1.3315
3. S3 1.3303

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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