USD/CAD wobbling around 1.3900, Yellen on sight

The Canadian dollar is posting marginal losses vs. its American peer on Wednesday, with USD/CAD hovering over the 1.3900 handle.

USD/CAD attention to oil, Yellen

Crude oil prices keep navigating in the lower bound of the weekly range, trading in the mid-$28.00 so far after yesterday’s deep pullback and removing an important tailwind for CAD.

Absent releases in Canada, the bulk of investors’ looks will be on Chief Janet Yellen’s Humphery-Hawkins testimony due later in the NA session. The greenback will thus take centre stage, as market consensus is expecting a balanced tone from Yellen although recent unease overseas could weigh on the Fed’s decision to hike rates at its March meeting.

USD/CAD significant levels

As of writing the pair is up 0.02% at 1.3879 with the next support at 1.3635 (low Feb.4) ahead of 1.3581 (100-day sma) and finally 1.3170 (200-day sma). On the upside, a surpass of 1.4103 (high Feb.3) would expose 1.4129 (20-day sma) and then 1.4327 (high Jan.26).