USD/CAD testing 3-week lows, targets 200-DMA?

The USD/CAD pair extended its bearish streak into Asia this Thursday, now meandering near multi-week lows amid broad based US dollar weakness, in wake of less hawkish FOMC minutes.

USD/CAD capped below 1.3300

Currently, the USD/CAD pair trades -0.15% lower at 1.3281, flirting with three-week lows of 1.3276 reached in the last hour. The spot remains under pressure on the back of fresh sell-off in the greenback against its main competitors as the Fed steps into ‘recursive backtracking’ after the FOMC minutes suggested that many policymakers assume a slower pace of rate hike in 2017 in the event Trump under delivers his promises for fiscal spending and tax reforms.

Moreover, the Loonie finds support from a phase of upside consolidation in the black gold, after oil prices staged a solid recovery a day before. Looking ahead, with the FOMC minutes out of the way, focus remains on the US jobs and ISM services data due later on Thursday.

USD/CAD Technical Levels

To the upside, the next resistances are seen near 1.3300 (round figure) and 1.3346 (daily pivot) and from there to 1.3377 (5-DMA). To the downside, immediate support might be located at 1.3250 (psychological levels) and below that at 1.3200 (zero figure) and at 1.3152 (200-DMA).