USD/CAD keeps highs near 1.3350, Fedspeak eyed

Pablo Piovano FXStreet

The Canadian dollar remains on the defensive vs. its neighbour on Monday, now taking USD/CAD to the mid-1.3300s, or session peaks.

USD/CAD now looks to Fedspeak, BoC

The pair is trading in the upper end of the range near 1.3350, levels last seen in mid-March, despite the profit taking sentiment surrounding the greenback.

Collaborating with CAD-downside, the barrel of West Texas Intermediate has slipped back towards the $50.00 mark, shedding an extra 1% after last week’s YTD tops in the boundaries of $52.00 the figure.

On the data front, Canadian Wholesale Sales have expanded 0.8% MoM in August, while the Chicago Fed index has improved to -0.14 in September from -0.72.

Later in the NA session, Markit’s advanced Manufacturing PMI for the current month is due followed by speeches by NY Fed W.Dudley (permanent voter, neutral), St. Louis Fed J.Bullard (voter, neutral), Chicago Fed C.Evans (2017 voter, dovish) and J.Powell (permanent voter, neutral).

In addition, Governor S.Poloz and Senior Deputy Governor C.Wilkins are due to testify before the House of Commons Financial Committee.

USD/CAD significant levels

As of writing the pair is up 0.06% at 1.3344 with the next hurdle at 1.3359 (high Oct.24) ahead of 1.3575 (50% Fibo of the 2016 drop) and finally 1.3839 (61.8% Fibo of the 2016 drop). On the other hand, a breakdown of 1.3200 (20-day sma) would open the door to 1.3148 (200-day sma) and then 1.3002 (low Oct.19).

Sell 80%

Buy 20%

Avg Sell Price 1.3267

Avg Buy Price 1.3123

Liquidity Distribution

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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