For the Loonie, there is not much to get excited about today. The Loonie gained 0.8 percent last week against the US dollar, after a 4 percent increase in international crude oil prices. However, it might be a busy week for the Loonie. So far, it looks positive for oil crude and for the Loonie because of the OPEC meeting in Baku, Azerbaijan over the weekend. So now, it seems like the group may cut slightly beyond the 1.2 million barrels a day it agreed to in December and keep that in place through June. The US is also influencing a higher crude oil price because of output shortfalls in Venezuela and Iran, which were triggered by US sanctions.
Technically speaking though, as long the USD/CAD pair doesn’t break the support of the 1,3300 handle, it might be constructive for the bulls (Loonie might get weaker), but if the USD/CAD goes under 1.3300 (stronger Loonie), it might easily test 1.3250. For today, some key resistance levels are 1.3365 and 1.3380.
The FOMC rate decision in the US takes place on Wednesday, so we should expect some volatility after 2:00 pm on Wednesday.