USD/CAD downside gathers traction, near 1.3020

The greenback is now accelerating its selling bias vs. its Canadian peer today, with USD/CAD dropping to lows near 1.3020.

USD/CAD weaker ahead of BoC

The pair is extending its weekly downside today, losing ground for the second session in a row and allowing a potential test of Tuesday’s troughs in the 1.2980 region.

Crude oil prices remain on the defensive so far today, removing support for CAD and somewhat limiting the pullback.

Ahead in the NA session, the BoC will hold its meeting, with market consensus expecting the central bank to keep its monetary policy unchanged. Governor S.Poloz is also due to speak later.

USD/CAD significant levels

As of writing the pair is retreating 0.12% at 1.3028 facing the next support at 1.2950 (50-day sma) followed by 1.2827 (low Jul.4) and finally 1.2674 (low Jun.23). On the other hand, a break above 1.3139 (high Jul.11) would aim for 1.3191 (high May 24) and then 1.3312 (38.2% Fibo of the 2016 down move).