- The pair stays sidelined around the 1.3230 area today.
- BoC’s C.Wilkins expected to speak late today.
- Critical inflation figures and Retail Sales due tomorrow in Canada.
After testing tops beyond 1.3300 the figure on Wednesday, USD/CAD came under renewed selling pressure and now appears sidelined in the 1.3230 region.
USD/CAD looks to oil, BoC
The pair is now trading within a tight range after being rejected from tops beyond 1.3300 the figure on Tuesday and Wednesday, levels last seen in late July.
In fact, the sharp sell off in crude oil prices since early October sparked a rally in the pair, which gained more than 5 cents since October’s lows in the 1.2800 neighbourhood to this week’s peaks.
Looking ahead, BoC’s C.Wilkins is due to speak later in the day ahead of tomorrow’s publication of key inflation figures tracked by the CPI for the month of October as well as September’s Retail Sales.
USD/CAD significant levels
As of writing the pair is losing 0.02% at 1.3230 and a breach of 1.3219 (10-day SMA) would aim for 1.3165 (21-day SMA) and then 1.3126 (low Nov.16). On the upside, the next up barrier aligns at 1.3320 (high Nov.20) seconded by 1.3387 (high Jun.20) and finally 1.3423 (78.6% Fibo of the 2017 drop).
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