USD/CAD challenges lows near 1.4100

By FXStreet FXStreet (Edinburgh) – The demand for the Canadian dollar remains on the rise today, sending USD/CAD to test fresh daily lows in the 1.4100 neighbourhood.

USD/CAD attention to BoC

CAD remains on the stronger side vs. its American counterpart at the beginning of the week, regaining ground lost after last week’s significant sell-off to over-a-decade lows just below the 1.4200 handle. The context of today’s CAD upside remains at least curious, advancing against the backdrop of USD strength and another drop in crude oil prices.

Ahead in the session, Canadian Housing Starts are due followed by the BoC’s Business Outlook Survey. In the US docket, the Fed’s Labor Market Conditions Index and the speech by Atlanta Fed D.Lockhart will take centre stage.

USD/CAD significant levels

At the moment the pair is down 0.33% at 1.4101 and a breach of 1.3793 (low Dec.24) would open the door to 1.3653 (3-month uptrend) and then 1.3565 (55-day sma). On the flip side, the next resistance aligns at 1.4190 (high Jan.11) ahead of 1.4196 (high Jul.23 2003) and then 1.4672 (high Apr.24 2003).
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Source:: FX Street