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USD/CAD rises modestly after Fed’s minutes, remains in range

7/6/2018, 10:45:34 AMBasics of Trading
USD/CAD rises modestly after Fed’s minutes, remains in range

The USD/CAD pair remains sideways, moving in range after the release of the FOMC minutes. The Fed’s document contained no major surprises and had a limited impact on the US dollar and bonds. 

USD/CAD rose from 1.3125 to 1.3152 after thee minutes and also following another leg lower in crude oil. The WTI fell to $72.65 a barrel, the lowest in a week after a surprise increase in EIA inventories and a WSJ report signaling that preparations for public listing of Aramco have stalled. 

Technical outlook 

USD/CAD is moving sideways around 1.3140. The bias is tilted slightly to the downside with price holding below the 20-day moving average that stands at 1.3175. 

Ahead of the Asian session, USD/CAD continues to move between 1.3160 and 1.3110. A consolidation above 1.3160 would likely add more positive momentum to the greenback for a test of 1.3180 and above 1.3200. On the flip side,a break under 1.3110 could send the pair under 1.3100 to the next strong support area seen at 1.3045/50.