31 Jan 2014
USD/CAD full reverse to session lows
FXstreet.com (Edinburgh) - Soon after posting fresh multi-year highs beyond 1.1220, the USD/CAD quickly dipped to 2-day lows in sub-1.1120 levels.
USD/CAD gave away gains
The pair is now trading in the red territory although it is closing its fourth consecutive week of gains after a few weeks of consolidation between 1.0570 and 1.0700 back to December. The better tone in the greenback – largely favoured by the US economy outlook and QE tapering – plus the now dovish stance from the BoC allowed the ongoing rally. Chief FX Strategist Shaun Osborne at TD Securities commented, “Short-term trend channel support at 1.1144 is under pressure; weakness below here may see losses extend modestly. We favour looking to buy dips and continue to target 1.1265/75 from a short-term perspective”.
USD/CAD key levels
At the time of writing the pair is losing 0.39% at 1.1122 and a break below 1.1103 (low Jan.29) would open the door to 1.1078 (low Jan.28) en route to 1.1048 (10-d MA). On the flip side, the initial resistance aligns at 1.1226 (high Jul16 2009) followed by 1.1237 (50% of 1.3066-0.9407).
USD/CAD gave away gains
The pair is now trading in the red territory although it is closing its fourth consecutive week of gains after a few weeks of consolidation between 1.0570 and 1.0700 back to December. The better tone in the greenback – largely favoured by the US economy outlook and QE tapering – plus the now dovish stance from the BoC allowed the ongoing rally. Chief FX Strategist Shaun Osborne at TD Securities commented, “Short-term trend channel support at 1.1144 is under pressure; weakness below here may see losses extend modestly. We favour looking to buy dips and continue to target 1.1265/75 from a short-term perspective”.
USD/CAD key levels
At the time of writing the pair is losing 0.39% at 1.1122 and a break below 1.1103 (low Jan.29) would open the door to 1.1078 (low Jan.28) en route to 1.1048 (10-d MA). On the flip side, the initial resistance aligns at 1.1226 (high Jul16 2009) followed by 1.1237 (50% of 1.3066-0.9407).