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22 Nov 2013
After hitting fresh 4-month highs near 1.0570, the USD/CAD initiated a correction lower to the current area of 1.0530/25 backed by strong Canadian data.
FXstreet.com (Edinburgh) - After hitting fresh 4-month highs near 1.0570, the USD/CAD initiated a correction lower to the current area of 1.0530/25 backed by strong Canadian data.
USD/CAD lower post-data
Strong retail sales in the Canadian economy, expanding at a monthly pace of 1.0%, added strength to the CAD on Friday, dragging the pair lower from levels last seen in mid August. Further data also showed that Core consumer prices gauged by the BoC rose 1.2% in a year to October and 0.2% inter-month, both prints in line with forecasts and a tad lower than September’s reading. “While we are bullish on the broader outlook for USD/CAD, there is a lot of wood to chop for the market in the 1.0550/1.0650 range—high points going back over the past 12 months. Given the state of play on the trend signals though, we think the compression in the range below 1.0650 over the past 6 months means that the USD is coiling for a more impulsive move up if it can trade through 1.0650”, suggested strategists at TD Securities.
USD/CAD levels to watch
The pair is now up 0.10% at 1.0532 with the next resistance at 1.0570 (high Nov.22) ahead of 1.0574 (high Jul.9) and then 1.586 (high Jul.8). On the flip side, a breakdown of 1.0516 (low Nov.22) would open the door to 10485 (high Nov.19) and finally 1.0449 (low Nov.21).
USD/CAD lower post-data
Strong retail sales in the Canadian economy, expanding at a monthly pace of 1.0%, added strength to the CAD on Friday, dragging the pair lower from levels last seen in mid August. Further data also showed that Core consumer prices gauged by the BoC rose 1.2% in a year to October and 0.2% inter-month, both prints in line with forecasts and a tad lower than September’s reading. “While we are bullish on the broader outlook for USD/CAD, there is a lot of wood to chop for the market in the 1.0550/1.0650 range—high points going back over the past 12 months. Given the state of play on the trend signals though, we think the compression in the range below 1.0650 over the past 6 months means that the USD is coiling for a more impulsive move up if it can trade through 1.0650”, suggested strategists at TD Securities.
USD/CAD levels to watch
The pair is now up 0.10% at 1.0532 with the next resistance at 1.0570 (high Nov.22) ahead of 1.0574 (high Jul.9) and then 1.586 (high Jul.8). On the flip side, a breakdown of 1.0516 (low Nov.22) would open the door to 10485 (high Nov.19) and finally 1.0449 (low Nov.21).