USD/CAD drops to lows near 1.3060, USD still weak

The greenback remains on the defensive during the second half of the week, now taking USD/CAD to the area of session lows near 1.3060.

USD/CAD weaker on FOMC, oil

The pair has seen its downside renewed after the FOMC left the Fed Funds unchanged at Wednesday’s meeting, although the Committee has still signaled a rate hike by year-end.

Adding to the decline, the continuation of the recovery in crude oil prices has lifted the barrel of West Texas Intermediate to levels near the $46.00 mark, lending extra legs to CAD.

Ahead in the session, US Existing Home Sales and the usual weekly report on the labour market are due later in the NA session.

USD/CAD significant levels

As of writing the pair is retreating 0.24% at 1.3068 facing the immediate support at 1.3049 (base of the 4-month rising channel) ahead of 1.2992 (100-day sma) and then 1.2827 (low Sep.6). On the other hand, a breakout of 1.3249 (high Sep.16/200-day sma) would open the door to 1.3253 (high Jul.27) and finally 1.3311 (38.2% Fibo of the 2016 drop).