USD/CAD hovering over 1.3500 ahead of BoC, FOMC

Pablo Piovano FXStreet

After climbing as high as the 1.3540 region during early trade, USD/CAD has now lost momentum and returned to the 1.3500 neighbourhood.

USD/CAD attention to BoC, FOMC

The pair seems to have found some decent support around yesterday’s lows in the mid-1.3400s, gaining around a cent since then although the bounce met strong resistance at today’s tops near 1.3540.

CAD stays underpinned by the rally in crude oil prices, with the barrel of West Texas Intermediate regaining the $51.00 mark and above ahead of tomorrow’s critical OPEC meeting. It is worth mentioning that the cartel should decide whether to extend the current output cut deal for another 6 or 9 months.

However, the Canadian currency should remain under pressure in light of the upcoming BoC meeting, although the absence of a press conference by Governor Poloz and an updated monetary policy report could probably remove some relevance from today’s event.

Further attention remains on the publication of the FOMC meeting, Existing Home Sales and the EIA’s weekly report on crude oil supplies.

USD/CAD significant levels

As of writing the pair is losing 0.07% at 1.3504 and a break below 1.3453 (low May 23) followed by 1.3440 (61.8% Fibo of the April-May rally) and finally 1.3408 (low Apr.24). On the flip side, the next up barrier is located at 1.3542 (high May 22) seconded by 1.3575 (38.2% Fibo of the April-May rally) and then 1.3641 (20-day sma).

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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