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USDCAD Breaks Below 1.34 Ahead of FOMC
USDCAD Breaks Below 1.34 Ahead of FOMC

USDCAD Breaks Below 1.34 Ahead of FOMC

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Nikolas Papas Forex Analyst
    Summary:
  • USDCAD trades lower today at 1.3377 as traders are cautious ahead of the important FOMC policy meeting. Loonie got a boost from crude oil rally

USDCAD trades lower today at 1.3377 as traders are cautious ahead of the important FOMC policy meeting. Loonie got a boost from crude oil rally yesterday above $54 per barrel. Canada has fallen out of the top 10 of the world’s most competitive economies, a sign that Canadians may have a harder time succeeding financially in the coming years. This year edition of the IMD World Competitiveness Ranking places Canada 13th out of 63 countries, the worst ranking in the annual survey’s history. Crude oil prices, Canada’s main export item, has stabilized around $53 per barrel.

The pair lost the 50 day moving average today and is trading down to 1.3377 holding above the 100 and 150 day moving average thus keeping the bullish momentum that started last week. Support stands at 1.3350 the 100 day moving average while more bids will emerge at 1.33 mark. Immediate resistance for the pair stands at 1.3415 the 50 hour moving average while a break above might trigger some aggressive technical buying, sending the pair to the next resistance at 1.3450 the high from previous week.