USD/CAD (current price: 1.2865)
The Canadian Dollar lost ground to its most important peer on Tuesday, as the currency was under pressure because of the decline in oil and stocks. Trading volume was low as most investors were waiting for today’s move by the FED, and tomorrow’s meetings by the BOJ and the Bank of England. The better than expected U.S. Retail Sales and Import Prices helped the U.S. Dollar as well, as the cross finished between the two key resistance levels at 1.2820 and 1.2920.
Our assessment: The pair is still in a correction after last week’s steep decline that pushed USD/CAD below 1.27. The cross might be headed for the re-test of the key resistance at 1.32 in the coming weeks.
