10 Apr 2014
USD/CAD advances beyond 1.0900
FXStreet (Edinburgh) - After bottoming out in the 1.0860 region on Wednesday, the USD/CAD managed to recover the 1.0900 handle today and print fresh highs around 1.0920.
USD/CAD decline halted near 1.0850
The dovish tone from yesterday’s FOMC minutes added to the already bearish scenario for the greenback, although spot seems to have found buyers in the mid-1.0800s. Data-wise, US Initial Claims dropped to 300K in the week ended on April 4th while Canadian New Housing Price index rose 0.2% inter-month in February. In the view of Shaun Osborne, Chief FX Strategist at TD Securities, “We think the potential for gains from here is limited though—our working technical thesis is that the break below the base of the consolidation around 1.10 (bear wedge) after the drop from 1.1275 implies scope to the 1.0735 area in the next week or so”.
USD/CAD key level
At the moment the pair is up 0.41% at 1.0924 with the immediate resistance at 1.0943 (high Apr.9) followed by 1.1001 (low Mar.27) and finally 1.1078 (high Mar.28). On the flip side, a breakdown of 1.0858 (low Apr.9) would expose 1.0836 (low Jan.10) and then 1.0800 (psychological level).
USD/CAD decline halted near 1.0850
The dovish tone from yesterday’s FOMC minutes added to the already bearish scenario for the greenback, although spot seems to have found buyers in the mid-1.0800s. Data-wise, US Initial Claims dropped to 300K in the week ended on April 4th while Canadian New Housing Price index rose 0.2% inter-month in February. In the view of Shaun Osborne, Chief FX Strategist at TD Securities, “We think the potential for gains from here is limited though—our working technical thesis is that the break below the base of the consolidation around 1.10 (bear wedge) after the drop from 1.1275 implies scope to the 1.0735 area in the next week or so”.
USD/CAD key level
At the moment the pair is up 0.41% at 1.0924 with the immediate resistance at 1.0943 (high Apr.9) followed by 1.1001 (low Mar.27) and finally 1.1078 (high Mar.28). On the flip side, a breakdown of 1.0858 (low Apr.9) would expose 1.0836 (low Jan.10) and then 1.0800 (psychological level).