FXStreet (Córdoba) – USD/CAD has eased from recent highs above 1.4300 on Wednesday as a mild comeback in oil prices has helped the loonie to trim losses.
USD/CAD fell around 120 pips from its 13-year peak of 1.4314 scored on Tuesday, but the correction was contained by the 1.4185 zone, confining the pair to a sideways phase over the last hours. At time of writing, USD/CAD is trading at the 1.4230 zone, still 0.21% below its opening price.
The Canadian dollar however remains weak, with expectations surrounding a rate cut at next BoC meeting (Jan 20) growing, given the effects on the economy of the renewed push lower in commodity prices.
Next on tap the US Department of Energy will publish its oil stockpiles report, which could trigger moves in oil and the CAD.
USD/CAD technical levels
On the upside, next resistances could be found at 1.4314 (Jan 12 high/monthly high May 2003), 1.4430 (Apr 30 high 2003) and not much until 1.4624 (Apr 24 2003 high). On the flip side, supports are seen at 1.4175 (Jan 12 low), 1.4070 (10-day SMA) and 1.3972 (Jan 6 low).
(Market News Provided by FXstreet)