USD/CAD hovering over 1.3400 ahead of data

The Canadian dollar has resumed its downside vs. its American neighbour on Wednesday, now sending USD/CAD to the 1.3400 neighbourhood.

USD/CAD attention to US data, EIA

The pair has recovered from yesterday’s drop and has now regained the 1.3400 handle despite the greenback is extending its selling mood on US political effervescence.

Adding to CAD weakness, crude oil prices remain on the defensive, dragging the West Texas Intermediate to the vicinity of $46.30 per barrel. The downside pressure has intensified around WTI after the API reported on Tuesday the biggest build in crude supplies since March, up by more than 9 million barrels.

Later in the session, US ADP report is due followed by the weekly report on crude inventories by the EIA and the FOMC meeting. On the Canadian side, Senior Deputy Governor C.Wilkins will give panel remarks on “Innovative Oversight in the Midst of Disruption.”

USD/CAD significant levels

As of writing the pair is up 0.04% at 1.3394 and a breakout of 1.3433 (high Oct.28) would open the door to 1.3575 (50% Fibo of the 2016 drop) and finally 1.3839 (61.8% Fibo of the 2016 drop). On the downside, the immediate support lines up at 1.3273 (20-day sma) ahead of 1.3095 (200-day sma) and then 1.3002 (low Oct.19).