FXStreet (Edinburgh) – The greenback has managed to break above the overnight consolidation pattern vs. its Canadian neighbour, taking USD/CAD beyond 1.3000 the figure.
USD/CAD attention to BoC
Spot keeps alive the recovery from recent lows in the 1.2830 area, although the lack of a strong catalyst seems to have capped the upside in the low-1.3000s so far.
The uncertainty around the greenback derived from the absence of clues on the timing of the Fed’s lift-off plus the upside seen in crude oil prices have been sustaining CAD-strength as of late, collaborating in the pair’s recent drop from fresh cycle highs.
Ahead in the session, the BoC will hold its meeting, although market consensus expects the central bank to keep unchanged its monetary stance today. However, investors will remain vigilant on the subsequent press conference by Governor S.Poloz.
USD/CAD levels to consider
As of writing, the pair is advancing 0.26% at 1.3013 and a surpass of 1.3095 (Fibo 23.6% of 1.1916-1.3458) would open the door to 1.3159 (55-day sma) and then 1.3200 (psychological level). On the other hand, the next support aligns at 1.2945 (100-day sma) followed by 1.2861 (uptrend from June lows) and finally 1.2827 (low Oct.15).
(Market News Provided by FXstreet)