USD/CAD falls below 1.3100, hits 2-month lows

USD/CAD broke below the 1.31 mark and slid to fresh 2-month lows during the American session, as commodity currencies continue to outperform ahead of the FOMC decision.

The loonie has been underpinned by higher oil prices on Wednesday as the IEA forecasts that global crude inventories will fall 600th bpd in the next 6 months, following the OPEC/NOPEC agreements.

USD/CAD fell through previous weekly lows and hit its lowest level since mid October at 1.3092 in recent dealings. At time of writing, USD/CAD is trading at 1.3095, down 0.26% on the day.

However, investors might refrain from adding positions hours ahead of the Federal Reserve decision on monetary policy.

USD/CAD levels to consider

As for technical levels, immediate supports are seen at 1.3071 (200-day SMA) and 1.3005 (Oct 19 low). On the flip side, resistances could be found at 1.3140 (Dec 14 & 13 highs), 1.3160 (Dec 12 high) and 1.3190 (100-day SMA).

USDCAD from Tip TV Productions on Vimeo.