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USD/CAD hovers near 6-year highs

FXStreet (Córdoba) - USD/CAD is going through a consolidative phase on Monday after posting a fresh 6-year high of 1.2823 amid broad USD strength and mounting pressure on the CAD from lower oil prices.

The pair started the week on a strong note and rose to a high of 1.2817 during the Asian session but surrendered some gains afterwards, although the the downside contained by the 1.2760 zone. At time of writing, USD/CAD is trading at the 1.2790 zone, virtually unchanged on the day.

On the data front, Canadian investors reduced their holdings of international securities at the fastest one-month pace on record in January. Foreign investment in Canadian securities rose by CAD 5.73 billion, while Canadian investors sold CAD 10.78 billion in foreign securities, Statistics Canada said Monday.

Next on tap, the US will release February Industrial Production data, which is expected to show a 0.2% expansion. However, in the absence of first-tier data and ahead of the FOMC decision on Wednesday, trading might remain subdued over the next sessions.

USD/CAD levels to watch

As for technical levels, USD/CAD could find immediate resistances at 1.2823 (2015 high Mar 13), 1.2841 (Mar 13 2009 high) and 1.2900 (psychological level). On the flip side, supports are seen at 1.2720 (100-hour SMA) and 1.2680 (Mar 13 low).

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