USD/CHF breaks 1.34 mark to hit fresh one-month lows, OPEC meeting eyed

The greenback remained on back-foot against its Canadian counterpart, dragging the USD/CAD pair below 1.3400 mark to fresh one-month lows. 

The pair on Wednesday came under some fresh selling pressure after the Bank of Canada, as was widely expected, left interest rates unchanged and disappointing existing home sales data from the US. Major disappointment, however, came from the release of minutes from the Fed's May meeting, which failed to provide any clues over the timing of future rate-hikes and aggravated the selling pressure surrounding the major. 

The pair also maintained its high degree of negative correlation with oil prices. Optimism over extension of the OPEC-led output cut agreement continues to boost oil prices and benefitted the commodity-linked currency - Loonie. In fact, WTI crude oil held near 5-week highs, closer to $52.00/barrel mark and has did little to stall the pair's ongoing slide to the lowest level since April 19.

   •  OPEC oil cuts extension by 9 months would be ‘price positive’ - JPMorgan

Today's US economic docket would be overshadowed by headlines coming out of the crucial major oil producers meeting, which remains a key determinant of the pair's next leg of directional move.

Technical levels to watch

A follow through weakness below 1.3380 level could accelerate the slide towards 1.3325 horizontal support, below which the pair would turn vulnerable to break below the 1.3300 handle and head towards testing its next support near mid-1.3200s. On the upside, any recovery attempts beyond the 1.3400 handle might now confront strong hurdle near 1.3450-60 region, which if cleared might trigger a short-covering rally back towards the key 1.35 psychological mark en-route 1.3535-40 strong horizontal resistance.