USD/CAD drifts to new lows below 1.3600 awaiting Fed’s decision

The US dollar hits fresh intra-day lows at 1.3575.
A moderate recovery in Oil prices has favored the CAD.
The pair remains looking for direction ahead of the Fed.

Guillermo Alcala FXStreet

The US Dollar is extending losses in a calm European trading session with the market awaiting the outcome of the Fed’s monetary policy decision before placing significant bets.

In this context, the USD/CAD has pulled lower to reach intra-day lows at 1.3575 although the pair remains moving halfway through the last two weeks’ range.

A modest pick up in Crude prices, after the OPEC report raised its global growth economic forecasts, easing concerns about an oil glut in 2024 has provided some support to the oil-sensitive CAD.

On the other hand, US Inflation data released on Tuesday showed that consumer prices remain at levels well above the Fed’s 2% target. This, coupled with the strong US employment levels seen last Friday, has curbed speculation of a Fed pivot in early 2024, underpinning support for the Dollar.

USD/CAD is looking for direction

From a wider perspective, the pair remains trading sideways within a 75-pips range, after bouncing from 1.3480 lows earlier this month. Resistances are at 1.3625 and 1.3660. Support levels lie at 1.3550 and the mentioned 1.3480 low.

Technical levels to watch

USD/CAD

Overview
Today last price	1.3585
Today Daily Change	-0.0007
Today Daily Change %	-0.05
Today daily open	1.3592

Trends
Daily SMA20	1.3626
Daily SMA50	1.3688
Daily SMA100	1.3591
Daily SMA200	1.3516

Levels
Previous Daily High	1.3619
Previous Daily Low	1.3545
Previous Weekly High	1.362
Previous Weekly Low	1.348
Previous Monthly High	1.3899
Previous Monthly Low	1.3541
Daily Fibonacci 38.2%	1.3591
Daily Fibonacci 61.8%	1.3573
Daily Pivot Point S1	1.3552
Daily Pivot Point S2	1.3512
Daily Pivot Point S3	1.3479
Daily Pivot Point R1	1.3626
Daily Pivot Point R2	1.3659
Daily Pivot Point R3	1.3699

Author

Guillermo Alcala

FXStreet

Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.

GBP/USD extends the drop to 1.3360

GBP/USD builds on Monday’s decline and briefly clinches five-day lows near 1.3360 on Tuesday. Cable’s extra pullback follows the better tone in the Greenback as uncertainty in the Middle East prompts investors to adopt a cautious stance. Meanwhile, an apathetic UK labour market report also collaborates with the selling pressure on the British Pound.

EUR/USD stays offered just above 1.1400

EUR/USD keeps the downtrend well in place for yet another day, challenging the 1.1400 contention zone on Tuesday. The continuation of the selling impulse in spot comes amid decent gains in the US Dollar, which continues to find support in the persistent effervescence surrounding the US-Iran crisis.

Middle East crisis intensifies, Gold up

Gold now seems to have embarked on a consolidative phase below the key $4,100 mark per troy ounce in the latter part of Tuesday’s session. Meanwhile, uncertainty surrounding the Middle East conflict and rising expectations for a hawkish Fed policy outlook are expected to limit the precious metal’s bullish momentum in the near term.

XRP rebounds on rising on-chain activity

Ripple (XRP) ticks up and trades around $1.13 at the time of writing on Tuesday. This rebound aligns with a broader recovery in the cryptocurrency market, attributed to reports that mediators between the United States (US) and Iran are seeking a 10-day cessation of strikes to find a way back to the signed Memorandum of Understanding (MoU).

The Iranian war has again risen

The Iranian war has again risen to the top of the economics factor list. There is no end in sight. Intelligence experts say the current level of offense/retaliation will not change minds in Tehran, while in Washington, Trump fears all-out war, which would mean boots on the ground.

US Dollar mid-year outlook: Exceptional currency, exceptional risks?

The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.