USD/CAD plummets to fresh 1-month lows, approaching 1.3200 mark ahead of BoC/FOMC minutes
• The ongoing bullish run in oil prices continues to underpin Loonie.
• The USD remains on the defensive and does little to lend any support.
• Focus shifts to the latest BoC policy decision/FOMC meeting minutes.
The USD/CAD pair remained under some heavy selling pressure on Wednesday and is currently placed at over one-month lows, around the 1.3230-25 region.
The pair did attempt a minor recovery Tuesday and moved beyond the 1.3300 handle following the release of Canadian trade balance data, showing that deficit rose to C$2.1 billion in November as exports contracted by 2.9%.
The uptick was quickly sold into near 50-day SMA support turned resistance amid the ongoing positive momentum in crude oil prices, which tends to underpin the commodity-linked currency - Loonie, and lack of any strong follow-through US Dollar buying.
Growing bets that the Fed might pause its policy tightening cycle in 2019 kept the USD bulls on the defensive, which coupled with a further up-move in oil prices, now moving beyond the key $50.00 psychological mark, exerted some additional downward pressure on Wednesday.
It would now be interesting to see if the pair is able to find any buying interest at lower levels or continues with the bearish trajectory as investors start repositioning for today's key event risks - the latest BoC monetary policy update and the release of FOMC meeting minutes.
Technical levels to watch
Given the highly near-term oversold conditions, any subsequent fall is likely to find decent support near the 1.3200-1.3190 region ahead of the 1.3160-55 area. On the flip side, immediate resistance is now pegged near mid-1.3200s, above which the pair is likely to recover further towards 1.3275-80 zone en-route the 1.3300 round figure mark.
Today Last Price: 1.3225
Today Daily change: -52 pips
Today Daily change %: -0.392%
Today Daily Open: 1.3277
Previous Daily SMA20: 1.3522
Previous Daily SMA50: 1.3348
Previous Daily SMA100: 1.3181
Previous Daily SMA200: 1.308
Previous Daily High: 1.3324
Previous Daily Low: 1.3268
Previous Weekly High: 1.3666
Previous Weekly Low: 1.338
Previous Monthly High: 1.4134
Previous Monthly Low: 1.316
Previous Daily Fibonacci 38.2%: 1.3289
Previous Daily Fibonacci 61.8%: 1.3302
Previous Daily Pivot Point S1: 1.3255
Previous Daily Pivot Point S2: 1.3233
Previous Daily Pivot Point S3: 1.3199
Previous Daily Pivot Point R1: 1.3311
Previous Daily Pivot Point R2: 1.3345
Previous Daily Pivot Point R3: 1.3367