USD/CAD breaches 1.4200, daily lows

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 12, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Edinburgh) - The Canadian dollar is now picking up further pace vs. the greenback, sending USD/CAD to record session lows in the 1.4190/80 band.

    USD/CAD sinks as oil recovers

    The Canadian dollar is now reverting the initial negative mood in response to the better tone from crude oil prices, with the barrel of WTI now rebounding from the $30 neighbourhood to clinch session highs near $31.70.

    In the meantime, spot has surrendered earlier gains after climbing as highs the 1.4270 area, or new 13-year peaks.

    Data wise in the US, NFIB’s Business Optimism Index has come in at 95.2 for the month of December, a tad lower than expectations albeit surpassing November’s 94.8.

    USD/CAD significant levels

    At the moment the pair is down 0.08% at 1.4211 and a breach of 1.3793 (low Dec.24) would open the door to 1.3684 (3-month uptrend) and then 1.3586 (55-day sma). On the flip side, the next resistance aligns at 1.4672 (high Apr.24 2003) followed by 1.4946 (high Apr.7 2003) and finally 1.5365 (high Jan.28 2003).
    For more information, read our latest forex news.

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