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.

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