USD/CAD near 3-week low ahead of BOC

The USD/CAD pair maintained it’s offered tone for fifth straight session and has now dropped to a fresh session low level of 1.2830 ahead of BOC monetary policy decision.

The pair attempted a tepid recovery to 1.2860 region, which got sold into amid broad based selling pressure surrounding the greenback. Moreover, the ongoing recovery trend in crude oil prices is also contributing to the upbeat sentiment around the commodity-linked currency - loonie. 

Investors now look forward to the BOC decision, which is expected to keep its monetary policy unchanged. However, the accompanying monetary policy statement would provide insight over the central bank's economic outlook and help investors determine the pair's next leg of directional move.

Technical levels to watch

Immediate support is seen at 1.2827 (yesterday's low), below which the pair could immediately break through 1.2800 handle and head towards testing its next major support near 1.2775-70 region. On the upside, momentum above 1.2862 (session high) should assist the pair back towards 1.2900 round figure mark.