USD/CAD testing lows near 1.3460

The Canadian dollar is now reclaiming some ground lost vs. its American neighbor on Friday, sending USD/CAD to test fresh lows in the 1.3460 region.

USD/CAD focus on oil, US politics, BoC

After testing once again recent highs above the 1.3500 handle during overnight trade, the pair lost upside momentum and sparked the current knee-jerk to the 1.3460/55 band.

Crude oil dynamics appear supportive of a weaker CAD, however, with the West Texas Intermediate down smalls around the mid-$44.00s per barrel for the time being.

Later in the NA session, the flash print of US Consumer Sentiment for the current month is due ahead of the speech by FOMC’s S.Fischer (permanent voter, hawkish).

In Canada, markets will be closed following the observance of Remembrance Day, although Governor S.Poloz will participate on a panel discussion on ‘Monetary Policy and Spillovers’ in Chile.

USD/CAD significant levels

As of writing the pair is losing 0.03% at 1.3466 facing the next down barrier at 1.3335 (20-day sma) followed by 1.3260 (low Nov.9) and then 1.3199 (55-day sma). On the flip side, a break above 1.3526 (high Nov.9) would open the door to 1.3575 (50% Fibo of the 2016 drop) and finally 1.3839 (61.8% Fibo of the 2016 drop).