USD/CAD Ranging Below 1.2700 Mark
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.