USD/CAD finds support around 1.3100

The decline in USD/CAD seems to have found quite decent support around 1.3100 the figure for the time being.

USD/CAD attention to oil, Fed

The pair is posting gains for the first time after five consecutive sessions with losses, as the recent rally in crude oil prices has been lending support to CAD while the greenback showed some choppy trade at the same time.

In fact, the barrel of West Texas Intermediate has now returned to sub-$53.00 levels after climbing to fresh 17-month tops in the mid-$54.00s on Monday following the non-OPEC deal over the weekend.

Absent releases in the Canadian docket, the attention (if any) will be on US calendar, with the publication of NFIB’s Business Optimism Index along with Export/Import Prices and the weekly report on US crude oil supplies by the API.

Spot is expected to attempt some consolidation ahead of the FOMC meeting due tomorrow. Recall that consensus sees the Fed hiking the Fed Funds by 25 bp, although the attention will likely be on the future steps by the Fed regarding further tightening during the next year.

USD/CAD significant levels

As of writing the pair is gaining 0.05% at 1.3135 facing the next hurdle at 1.3165 (high Dec.12) followed by 1.3192 (100-day sma) and finally 1.3311 (38.2% Fibo of the 2016 drop). On the downside, a break below 1.3104 (low Dec.12) would open the door to 1.3063 (200-day sma) and then 1.3002 (low Oct.19).