USD/CAD lowest since Feb on hawkish Poloz, weaker DXY

The USD/CAD pair extends yesterday’s massive declines into a second day today, in the wake of the US political worries and hawkish BOC Governor Poloz.

USD/CAD trades below all major DMAs

The major came under renewed selling pressure in the Asian trades, as it faces double whammy amid a delay in the US Senate vote on the health-care bill induced USD sell-off on one hand, while on the other hand, the overnight hawkish remarks from the Bank of Canada (BOC) central bank Poloz boosts the CAD to hit fresh four-month tops of 1.3140 versus the US dollar.

Moreover, the recovery in oil prices also continue to underpin the sentiment around Loonie, as attention shifts towards BOC Poloz’s speech scheduled again later today. Also, of note will be the EIA crude stockpiles data, which will have a significant impact on the commodity-currency.

USD/CAD Technical levels                

The next resistance can be seen at 1.3200 (round figure/ daily high), 1.3220/37 (5 & 10-DMA) and 1.3261 (Jun 27 high). Next support to the downside can be found at 1.3135/28 (classic S1/ Fib S2), 1.3100 (key psychological support) and 1.3054 (Nov-end lows).