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  • USD/CAD seesaws around 2.5-month high as investors remain cautious ahead of the BOC.
  • WTI’s refrain from further declines added brakes to the momentum.

USD/CAD remains below 61.8% Fibonacci retracement of May swing highs to July swing lows as it trades near 1.3335 during early Wednesday.

The quote previously surged to the highest since mid-June after the oil prices slumped on trade/economic worries. However, recent news of the US Treasury sanctions on Iran Space Agency, Iran Space Research Center and the Astronautics Research Institute stops the oil benchmark’s further declines.

Even so, the Loonie pair’s refrains from declining as uncertainty surrounding the US-China trade negotiations curb the strength of the commodity-linked currency.

Investors now await details of the monetary policy meeting by the Bank of Canada (BOC) for fresh impulse as recently mixed data from Canadian economic increases the importance of today’s rate decision amid a global rush towards easy money policy. Analysts at ING expect October rate cut considering robust Canadian growth figures for second quarter.

Additionally, Canada’s July month trade numbers and a slew of Fed speak will also entertain momentum traders.

Technical Analysis

The pair needs to provide a daily closing beyond 1.3360 mark, near to 61.8% Fibonacci retracement, in order to aim for 1.3400 and June 18 high surrounding 1.3430, failing to which can keep highlighting 1.3295/90 support-confluence, including 50% Fibonacci retracement and 100-day simple moving average (DMA) for sellers.