USD/CAD sinks to lows near 1.2820

The offered bias around the greenback remains unabated on Thursday, now sending USD/CAD to post daily lows in the 1.2820/15 band.

USD/CAD weaker post-FOMC, focus on EIA

Spot has come under renewed selling pressure following the dovish statement from the FOMC on Wednesday, where the Committee has reinforced its ‘data-dependent’ stance and gave no clues regarding the timing of the next rate hike by the Fed.

Adding to CAD’s buying sentiment, the rally in crude oil prices remains well and sound, pushing the barrel of West Texas Intermediate to multi-day tops near the $47.00 handle.

Next on tap will be the EIA’s weekly report on crude oil inventories, US Initial Claims and the Philly Fed manufacturing index. In Canada, Foreign Transactions figures are only due for release.

USD/CAD significant levels

As of writing the pair is losing 0.22% at 1.2817 and a breach of 1.2799 (low Aug.16) would aim for 1.2674 (low Jun.23) and finally 1.2651 (low Jun.8). On the flip side, the next up barrier lines up at 1.2911 (base of the 3-month rising channel prev support now resistance) ahead of 1.2934 (100-day sma) and then 1.2969 (55-day sma).