USD/CAD struggles to hold above 1.31 ahead of FOMC's announcements

The USD/CAD pair is struggling to set its next short-term direction on Thursday as it fluctuates in a tight 35-pip range. As of writing the pair was trading at 1.3099, losing 0.1% on a daily basis.

In the absence of significant fundamental drivers, markets hope for the Fed meeting to be the next catalyst. Previewing the event, “We do not expect the Fed to hike the Fed funds rate tonight at 20:00 CET (in line with consensus and market pricing). As it is one of the interim meetings without updated projections and a press conference, we do not expect Powell & co to make big changes to the policy signals in the statement,” Danske Bank analysts said.

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Earlier today, the data from the U.S. showed that weekly initial jobless claims came in at 214K to match analysts' expectations. On the other hand, the new housing price index in Canada eased to 0.2% on an annual basis from 0.4% recorded in August.

Meanwhile, crude oil prices struggle to shake off the bearish pressure. After recovering above the $62 mark, the barrel of West Texas Intermediate reversed its course and was last seen trading 30 cents lower at $61.40 to limit the commodity-sensitive loonie's any potential gains against its peers.

Technical levels to consider

The immediate support for the pair aligns at 1.3090 (20-DMA) ahead of 1.3045 (100-DMA) and 1.3000 (psychological level). On the upside, resistances are located at 1.3125 (daily high), 1.3170 (Oct. 31 high) and 1.3200 (psychological level).