USD/CAD: A phase of bullish consolidation post-BOC, Yellen

The USD/CAD pair is headed for the first weekly gain in four, with the recent upmove courtesy of a dovish BOC statement and hawkish Fed Yellen’s remarks.

USD/CAD: Upside capped below 1.3300

Currently, the USD/CAD pair trades modestly flat at 1.3268, hovering close fresh five-day highs reached at 1.3272 in opening trades. The spot oscillates in an extremely slim range, as the bulls consolidate the previous massive upsurge triggered by dovish BOC decision, with the central bank leaving doors open for further rate cuts.

The rally in USD/CAD seen yesterday, derived extra stimulus from hawkish comments from the Fed Chief Yellen, after she said that the US had waited ‘too long’ to continue raising rates, while adding that the bank remains on track for gradual rate increases going forward.

Meanwhile, renewed buying seen around oil prices underpins the resource-linked Loonie, keeping any upside attempts in check so far this session. The major now looks forward to the US data releases for fresh USD moves, while EIA crude reserves report will also take center-stage in the US afternoon.   

USD/CAD Technical Levels

To the upside, the next resistances are seen near 1.3300 (round figure) and 1.3321 (100-DMA) and from there to 1.3349 (daily R1). To the downside, immediate support might be located at 1.3200 (zero figure) and below that at 1.3159 (200-DMA) and at 1.3114 (daily S1).