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USD/CAD testing lows near 1.3130

FXStreet (Edinburgh) - The Canadian dollar is picking up pace vs. its Canadian counterpart on Monday, taking USD/CAD to the 1.3135/30 band.

USD/CAD focus on FOMC, oil

The US dollar is surrendering part of its recent strong gains, dragging spot to test daily lows in the 1.3130 area at the beginning of the week after testing the 1.3200 neighbourhood on Friday.

The better tone in crude oil prices is lending support to the Canadian dollar today, helping with the pair’s downside. Ahead in the week, the FOMC meeting will take centre stage, seconded by Canadian GDP figures due on Friday.

USD/CAD levels to consider

As of writing, the pair is retreating 0.22% at 1.3136 with the next support at 1.3069 (61.8% Fibo of 1.3459-1.2827) ahead of 1.3000 (psychological level) and finally 1.2979 (100-day sma). On the upside, a surpass of 1.3217 (38.2% Fibo of 1.3459-1.2827) would aim for 1.3310 (23.6% Fibo of 1.3459-1.2827) and then 1.3459 (high Sep.29).

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