USDCAD got a boost from the lower line of the trend channel and tested the middle point the last fall. Despite rising oil prices which have a %91,4 negative correlation over the last 10 years, dollar index pressures got a bit higher and USDCAD was able to hold and launch over the 1.2450 support. Now a busy schedule is waiting for USDCAD. Tomorrow, both FED and BOC will have a meeting. Especially FOMC decisions will be a big factor for future moves. OPEC+ meeting in early February will also be important for USDCAD because of the high negative correlation.
Both the middle point of the last top-bottom and 50-day moving average, 1.27 is the main resistance. If broken above, the door to the previous top 1.2964 and possibly to the upper line of the trend channel might open. For downside moves, 1.2450-1.25 zone may be followed as the main support for short to medium term direction.
