USD/CAD clings to gains around 1.2960, Fed eyed

• The pair keeps the tight range around 1.2960 ahead of the FOMC.
• Spot extends the sideline theme below the 1.3000 milestone.
• The Fed is expected to raise rate at today’s meeting by 25 bp.

USD/CAD is prolonging the rangebound trade around the 1.2960 region after finding some decent support in the 1.2880 area at the beginning of the week.

USD/CAD looks to Fed, NAFTA

Spot struggles to define a direction so far this week, with gains limited around the 10-day SMA – today at 1.2965 – and the bottom of the range in the 1.2880 zone.

The pair is recovering some ground lost after the recent sharp sell off in the greenback. In the same line, CAD is giving away part of its recent gains backed by the up move in crude oil, positive docket and optimism around the NAFTA.

Ahead in the session, the FOMC gathering will be the salient event, seconded by an update of the ‘dots-plot’ and J.Powell’s press conference.

USD/CAD significant levels

As of writing the pair is gaining 0.06% at 1.2961 facing the next hurdle at 1.3027 (10-day SMA) seconded by 1.3059 (55-day SMA) and finally 1.3066 (high Sep.18). On the flip side, a breach of 1.2882 (low Sep.20) would aim for 1.2866 (200-day SMA) and then 1.2722 (38.2% Fibo of the 2017 drop).