USD/CAD Ranging Below 1.2700 Mark
The USD/CAD
pair gave up majority of its Monday's gain and since then has been
trading indecisively within a narrow trading range ahead of the very
important FOMC meeting outcome.
Last week, the pair dropped to
its lowest level since July 2015 led by a smart recovery in crude oil
prices and positive economic data from Canada. Heading into very
important central bank meetings, the pair seems to consolidate below
1.2700 handle.
Technical levels to watch
Sustained
weakness below 1.2700 mark and a subsequent weakness below 1.2650 level
seems to drag the pair back below 1.2600 handle to retest recent low of
1.2593 level. Continued selling pressure below 1.2600 mark, the pair
could accelerate the fall towards its next major support near 1.2550
region.
On the upside, sustained momentum above 1.2700 mark is
likely to get extended towards Monday's high resistance near 1.2720 and
eventually towards 1.2750-60 resistance area.
