USD/CAD in search of firm direction, remains stuck in a range above 1.3400 mark
- A modest intraday USD uptick lacked conviction amid increasing Fed rate cut bets.
- A goodish pickup in Crude Oil prices underpinned Loonie and exerts some pressure.
The USD/CAD pair failed to capitalize on the intraday uptick to 1-1/2 week tops and is currently placed in the neutral territory, still above the 1.3400 handle.
The pair did get a minor intraday lift on the back of a modest pickup in the US Dollar demand led by some aggressive selling around the shared currency following the ECB President Mario Draghi's dovish remarks at the Forum on Central Banking in Sintra.
However, the USD bulls lacked any strong conviction amid expectations of a dovish Fed statement and indications of a rate cut by the end of this year when it announces the latest monetary policy update at the end of a two-day meeting on Wednesday.
This coupled with a goodish intraday up-move in Crude Oil prices underpinned demand for the commodity-linked currency - Loonie and further collaborated towards keeping a lid on the pair's attempted up-move, rather prompted some selling at higher levels.
On the economic data front, Tuesday's disappointing release of the Canadian manufacturing sales data for April was largely offset by mixed US housing market data for May and did little to provide any directional impetus.
Meanwhile, the pair remains well within a broader trading range held over the past two trading session and hence, it would be prudent to wait for a sustained move in either direction before positioning for any meaningful intraday trading opportunities.
Technical levels to watch
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