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USD/CAD drops to lows near 1.3230

FXStreet (Edinburgh) - The offered tone around the dollar remains intact on Wednesday, now dragging USD/CAD to test session lows in the 1.3235/30 band.

USD/CAD looks to the FOMC meeting

The greenback has come under renewed selling pressure after yesterday’s poor prints from the US docket, where Markit’s Services PMI, CB’s Consumer Confidence and September’s Durable Goods Orders have all missed expectations.

Today’s recovery in crude oil prices is lending some support to the Canadian dollar, ahead of the EIA’s weekly report and the more relevant FOMC meeting. The dollar will thus remain under vigilance, as the view of the Committee on a potential lift-off (or not) in December will take centre stage.

USD/CAD levels to consider

As of writing, the pair is retreating 0.30% at 1.3228 facing the next support at 1.3175 (55-day sma) followed by 1.3069 (61.8% Fibo of 1.3459-1.2827) and finally 1.2998 (100-day sma). On the other hand, a breakout of 1.3310 (23.6% Fibo of 1.3459-1.2827) would expose 1.3400 (psychological handle) and then 1.3459 (high Sep.29).

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