The U.S. dollar erased losses and re-approached a fresh three-month peak against its Canadian counterpart today, as lower oil prices weighed on demand for the commodity-related Canadian currency and as investors eyed the Federal Reserve’s upcoming policy statement.

The pair was likely to find support 1.3121, Monday’s low and resistance at 1.3286, the high of March 28.

Oil prices moved sharply lower today amid concerns over a global glut of crude and refined products.

Meanwhile, market participants eyed the Fed’s upcoming policy decision on Wednesday, as a recent string of pbeat U.S. data continued to support expectations for a rate hike by the U.S. central bank in the near future.

While most investors expect the Fed to leave its monetary policy unchanged this week, it could give hints on the timing of future rate hikes.

The loonie was steady against the euro, with EUR/CAD at 1.4531.