USD/CAD consolidative below 1.3400, US politics eyed

The greenback is giving away part of yesterday’s strong advance vs. its main rivals and is now taking USD/CAD to a sideline theme below the 1.3400 handle.

USD/CAD focus on oil, USD

The pair has deflated from recent multi-month tops above 1.3500 the figure although it seems to have found some decent support in the 1.3260/80 band so far this week.

Spot remains vigilant after Donald Trump became the new US President in yesterday’s elections. Market participants are expected to closely follow his potential initial measures, particularly anything related to the Fed and to trade.

CAD also remains supported by the so far tepid recovery in crude oil prices despite the recent build in crude inventories as reported by the API on Tuesday and the EIA on Wednesday. The barrel of West Texas Intermediate is currently gaining smalls in the $45.40 region.

On the data front, Canadian New Housing Price Index is due along with the usual weekly report on US labour market.

USD/CAD significant levels

As of writing the pair is losing 0.25% at 1.3390 facing the next down barrier at 1.3315 (20-day sma) followed by 1.3260 (low Nov.9) and then 1.3189 (55-day sma). On the other hand, a break above 1.3526 (high Nov.9) would open the door to 1.3575 (50% Fibo of the 2016 drop) and finally 1.3839 (61.8% Fibo of the 2016 drop).