For the second time in four sessions, bidders have defended the 1.3150 area in the USD/CAD. Aided by comparatively hawkish comments from FOMC members Bullard and Powell, it appears as though a daily double bottom formation may be setting up for the Loonie.

Over the past week, a rallying WTI crude oil market and dovish FED have driven the USD/CAD through support level after support level. Now, the tables appear to be turning. Tempered FED rate cut expectations and a possible intermediate-term $60.00 top in WTI crude may lead to the USD/CAD finding solid ground.

The USD/CAD Is Forming A Double Bottom

As of this writing (2:00 PM EST), the Loonie has a great chance of forming a daily Double Bottom just above 1.3150.

Here are the key levels to watch in this market moving forward:

• Resistance(1): 38% Current Wave, 1.3258
• Support(1): Double Bottom, 1.3151

Overview: If you plan to trade the USD/CAD over the next 24 hours, beware of enhanced volatility surrounding the API and EIA crude oil inventories reports. In addition, U.S. Durable Goods Orders (May) are due out during Wednesday’s U.S. premarket. Each of these events has the potential to spike participation and send rates directional.