USD/CAD breaks below 1.3900 to complete retracement of 2016 rally

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 3, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Córdoba) - USD/CAD broke below 1.3900 and printed fresh monthly lows amid broad USD weakness and with the Canadian dollar underpinned by a recovery in oil prices.

    USD/CAD has almost retraced its 2016 rally, which led the pair to a 13-year peak of 1.4689 in January, having lost more than 800 pips ever since. On Wednesday, USD/CAD was rejected by the 1.41 zone, and lost more than 250 pips, breaking below the 50-day SMA, to a low of 1.3827, last seen Jan 4.

    At time of writing, USD/CAD is trading at 1.3830, down 1.59% on the day, on track to post its ninth daily loss out of the last 11 trading days.

    USD/CAD levels to watch

    As for technical levels, next supports are seen at 1.3812 (Jan 4 low), 1.3800 (psychological level) and 1.3777 (Dec 17 low). On the flip side, resistances could be found at 1.4075 (10-day SMA), 1.4100 (Feb 3 high/psychological level) and 1.4121 (Jan 28 high).
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