USD/CAD challenging 1.3100, focus on BoC

The greenback is losing some traction on Wednesday, now dragging USD/CAD to visit the boundaries of the key support at 1.3100.

USD/CAD attention to oil, BoC

CAD keeps deriving support from the recovery in crude oil prices, sending the barrel of West Texas Intermediate to print fresh 2016 tops beyond the $49.00 mark in a context of increasing risk-on trade.

Later in the NA session, the BoC is expected to keep its monetary stance unchanged at its meeting. On the US side, Markit’s Services PMI, trade balance figures and the EIA report on crude inventories are all due along with speeches by FOMC’s Harker, Kaplan and Kashkari.

USD/CAD significant levels 

As of writing the pair is losing 0.18% at 1.3104 and a break below 1.2986 (23.6% Fibo of 1.4692-1.2458) ahead of 1.2946 (55-day sma) and then 1.2925 (20-day sma). On the flip side, the next hurdle lines up at 1.3188 (high May 24) followed by 1.3312 (38.2% Fibo of 1.4692-1.2458) and finally 1.3366 (200-day sma).