USD/CAD sidelined below 1.3300 ahead of BoC

The greenback is trading on a better mood on Wednesday, now prompting USD/CAD to post mild gains around 1.3290 ahead of the opening bell in Euroland.

USD/CAD attention to the BoC

Spot is now advancing for the second session in a row, looking to prolong the bounce off Monday’s lows near 1.3230 against the backdrop of a renewed bid tone surrounding the greenback.

In addition, crude oil prices have lost some upside momentum following recent yearly tops above the $52.00 mark in response to heightened optimism after the OPEC deal to limit oil production, all weighing on CAD and thus collaborating with the upside.

Later in the NA session, the Bank of Canada will hold its monetary policy meeting, with consensus among traders expecting the central bank to keep the key rate unchanged at 0.50%.

Further news regarding CAD saw speculative net shorts remained in the area of 3-week lows during the week ended on November 29, as shown by the latest CFTC report.

USD/CAD significant levels

As of writing the pair is up 0.08% at 1.3287 facing the next hurdle at 1.3311 (38.2% Fibo of the 2016 drop) followed by 1.3357 (high Dec.5) and then 1.3429 (20-day sma). On the other hand, a breach of 1.3231 (low Dec.5) would open the door to 1.3193 (100-day sma) and finally 1.3066 (200-day sma).