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USD/CAD weak below 1.3200, BoC eyed

FXStreet (Edinburgh) - The Canadian dollar is posting moderate gains vs. its American neighbor on Monday, with USD/CAD now hovering over the 1.3200 handle.

USD/CAD focus on Poloz

After dropping to the boundaries of the psychological support at 1.3000 on Friday, the pair has managed to put itself together and has staged a comeback fuelled almost exclusively by a recovery in USD. However, the bullish attempt has run out of vigour in the mid-1.3200s, coming lower to the current 1.3200/1.3190 band.

Ahead in the session, US Existing Home Sales and the speech by Atlanta Fed D.Lockhart will be in the limelight. However, BoC’s Governor S.Poloz will give a speech on “Riding the Commodity Cycle: Resources and the Canadian Economy”, where market participants will look for clues regarding any mention of domestic monetary policy, mainly in light of the recent FOMC decision.

USD/CAD levels to consider

The pair is now losing 0.26% at 1.3192 and a breach of 1.3160 (low Sep.16) would open the door to 1.3074 (low Sep.17) and then 1.3012 (low Sep.18). On the other hand, the initial up barrier aligns at 1.3233 (high Sep.21) followed by 1.3261 (high Sep.16) and finally 1.3290 (high Sep.10).

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