USD/CAD catches a bounce through 1.34 and scores up half a loonie

Currently, USD/CAD is trading at 1.3437, up 0.24% on the day, having posted a daily high at 1.3449 and low at 1.3394.

Some buying activity went on in early Asia on Wednesday, taking the pair off the lows at the figure and up to tally half a loonie to aforementioned highs. 

USD/CAD has been better bid since the Fed, despite the fact that oil prices are elevated and yield spreads have narrowed.  "The near-term focus squarely centered on the broader market tone ahead of Thursday’s retail sales and CPI and Friday’s monthly GDP for October, explained analysts at Scotiabank, adding, "We remain medium-term USD/CAD bulls (CAD bears) into 2017 and hold a Q2 2017 USDCAD target of 1.40."

USD/CAD levels

The analysts at Scotiabank added that they view the January-May decline retracement as incomplete and highlight the importance of the 50% retracement at 1.3575 and 61.8% retracement at 1.3839. Meanwhile, current price is 1.3438, with resistance ahead at 1.3449 (Daily High), 1.3467 (Daily Classic R2), 1.3481 (Weekly Classic R1), 1.3497 (Daily Classic R3) and 1.3523 (Monthly High). Next support to the downside can be found at 1.3429 (Yesterday's High), 1.3417 (Daily Classic R1), 1.3417 (Weekly High), 1.3406 (Daily Open) and 1.3396 (Hourly 20 EMA).