FXStreet (Edinburgh) – The Canadian dollar is trading on a firmer footing vs. its American peer on Wednesday, with USD/CAD currently returning to the 1.3200/1.3190 region.

USD/CAD eyes on the FOMC meeting

Spot is giving away yesterday’s strong gains following a better sentiment around the Canadian dollar, which continues to derive support from today’s rally in crude oil prices.

Next of relevance will be the key FOMC meeting. Market participants will remain vigilant on the tone of the statement, as the views of the Committee regarding the possibility of a rate hike in December will be crucial for the dollar in the near term.

USD/CAD levels to consider

As of writing, the pair is retreating 0.46% at 1.3205 facing the next support at 1.3175 (55-day sma) followed by 1.3069 (61.8% Fibo of 1.3459-1.2827) and finally 1.2998 (100-day sma). On the other hand, a breakout of 1.3310 (23.6% Fibo of 1.3459-1.2827) would expose 1.3400 (psychological handle) and then 1.3459 (high Sep.29).

The Canadian dollar is trading on a firmer footing vs. its American peer on Wednesday, currently returning to the 1.3200/1.3190 region…

(Market News Provided by FXstreet)

By FXOpen