USD/CAD falls toward 1.3200

USD/CAD dropped sharply on Thursday, mainly driven by a downward correction seen in the greenback, following recent gains. 

USD/CAD reached a multi-month high of 1.3313 last Friday, and following a failed attempt to consolidate above the 1.333 mark today, it turned lower and dropped toward the 1.3200 area. Having bottomed out at 1.3203, the pair was last trading at 1.3208, down 0.53% on the day.

While domestic risk remains limited ahead of next week’s Bank of Canada policy decision and quarterly forecast update, US data barely affected the dollar after FOMC minutes showed Wednesday that policymakers remain split on whether the central bank should tighten policy further. 

USD/CAD levels to consider

In terms of technical levels, USD/CAD could find next supports at 1.3198 (200-day SMA), 1.3175 (21-day SMA) and 1.3138 (Oct 10 low). On the flip side, resistances line up at 1.3306 (Oct 13 high), 1.3313 (Oct 7 high), 1.3404 (Mar 16 high) and 1.3445 (Mar 9 high).