With the FOMC Minutes bearing down on the markets, forex action has been limited. The Greenback has turned in a mixed performance with losses vs the Japanese yen and euro offsetting gains against the Swiss franc and Canadian dollar. For the time being, currency traders are all over the map for today’s session.

During the U.S. overnight, January WTI crude plunged beneath $50.00 for the first time a long while. Prices fell to the neighborhood of $49.50 before reversing positive toward the $52.00 handle. The initial washout beneath $50.00 was a beauty, producing a fast 40+ ticks. If you got in the action, well done!

A Pre FOMC Minutes Look At The USD/CAD

The chaos in crude oil has produced whipsaw conditions in the USD/CAD. However, the action isn’t over yet with the FOMC Minutes due out later this afternoon.

At press time, the USD/CAD is in heavy rotation near the 1.3275 handle. Action is modest, with most traders choosing to sit it out until the 2:00 PM EST FOMC release. For the remainder of the session, I will be watching two levels very closely:

• Resistance(1): Yearly High/Double Top, 1.3385
• Support(1): Bollinger MP, 1.3186

Overview: While rates of the USD/CAD are unlikely to hit either level today, Friday may bring a test of either. Forex players are eagerly awaiting the FOMC Minutes, scanning for dovish sentiment from the committee. If they do not get it, then a test of Yearly Highs (1.3385) is probable.

Given the recent weakness in WTI crude and a suddenly passive FED, I maintain a bullish bias toward this market until proven otherwise.