On Wednesday, the USDCAD currency pair decreased slightly from 1.35026 to 1.3510.

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• USD/CAD edges lower to 1.3510 on Wednesday.

The pair currently trades last at 1.35026.

The previous day high was 1.3528 while the previous day low was 1.3449. The daily 38.2% Fib levels comes at 1.3498, expected to provide support. Similarly, the daily 61.8% fib level is at 1.3479, expected to provide support.

The USD/CAD pair trades with a modest loss above the 1.3500 mark during the early Asian trading hours on Wednesday. The hawkish stance from the Federal Reserve (Fed) and risk aversion boost the US Dollar (USD) across the board. Meanwhile, the US Dollar Index (DXY), a measure of the value of the USD relative to a basket of foreign currencies, holds above 106.20, the highest level since November. The pair currently trades around 1.3510, down 0.05% on the day.

In the absence of economic data released from the Canadian docket on Wednesday, the USD/CAD pair remains at the mercy of USD price dynamics. However, the rebound in oil prices might cap the upside of USD/CAD and support the commodity-linked Loonie as the country is the leading oil exporter to the US.

On Tuesday, the economic data showed that the US Conference Board (CB) Consumer Confidence for September rose by 103.0 from 108.7 in August. The figures dropped to a four-month low and indicated the impact of higher interest rates and concerns about the political environment. Meanwhile, the Building Permits came in at 1.541M in August from the previous reading of 1.443M. The House Price Index for July rose to 0.8% MoM from 0.4% in the previous reading, above the market consensus of 0.5%. New Home Sales declined -8.7% in August from 8% rise in July.

The Federal Reserve (Fed) decided to hold interest rate unchanged in the 5.25% to 5.50% range in its September meeting last week. In terms of macroeconomic predictions, most members still expect further rate rises later this year. Minneapolis Federal Reserve Bank President, Neel Kashkari stated on Tuesday that he is one of the Fed policymakers who sees one more rate hike this year. He added that US rates probably have to go a little bit higher and be held there for longer, to cool things off. This, in turn, boosts the USD against the Canadian Dollar (CAD).

Looking ahead, market players await the US Durable Goods Orders report will be released on Wednesday. The Core Personal Consumption Expenditure (PCE) Price Index, the Fed’s preferred measure of consumer inflation on Friday will be in the spotlight with an expected drop from 4.2% to 3.9%. Traders will take cues from the data and find trading opportunities around the USD/CAD pair.

Technical Levels: Supports and Resistances

USDCAD currently trading at 1.351 at the time of writing. Pair opened at 1.3517 and is trading with a change of -0.05 % .

The pair is trading below its 20 Daily moving average @ 1.3543, above its 50 Daily moving average @ 1.3453 , above its 100 Daily moving average @ 1.3402 and above its 200 Daily moving average @ 1.346

The previous day high was 1.3528 while the previous day low was 1.3449. The daily 38.2% Fib levels comes at 1.3498, expected to provide support. Similarly, the daily 61.8% fib level is at 1.3479, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.3468, 1.3419, 1.3389
• Pivot resistance is noted at 1.3547, 1.3577, 1.3626

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