USD/CAD retreats to 1.4060 ahead of FOMC

By FXStreet FXStreet (Edinburgh) – The Canadian dollar is now regaining some pips vs. the greenback after USD/CAD has hit fresh cycle highs just above the 1.4100 handle.

USD/CAD off 12-year highs

The pair has started the new year on the right footing, advancing to levels last seen over a decade ago in the 1.4100 neighbourhood boosted by the unabated sell-off in crude oil prices – WTI is now trading around $34.50, or 2.5% down while Brent dropped to the lowest level since July 2004 in early trade.

Canadian data showed the trade deficit shrunk to just below $2.0 billion during November, while the US trade deficit came in better than expectations at $42.4 billion during the same period, down from October’s $44.6 billion.

USD/CAD key levels

At the moment the pair is up 0.63% at 1.4078 facing the next resistance levels at 1.4166 (high Aug.22 2003) ahead of 1.4196 (high Jul.23 2003) and then 1.4672 (high Apr.24 2003). On the downside, a breach of 1.3627 (3-month uptrend) would target 1.3494 (55-day sma) and then 1.3353 (100-day sma).
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Source:: FX Street