USD/CAD challenging lows near 1.2870

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Apr 18, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The greenback is now giving away some of its earlier gains vs. its Canadian neighbour, pushing USD/CAD to the 1.2880 area.

    USD/CAD attention to oil, Fedspeak

    Spot has gathered further downside pressure in response to a mild recovery of crude oil prices, which look to extend the bounce off earlier lows after the fiasco at the Doha meeting. The barrel of West Texas Intermediate is now around the mid-$40.00s after bottoming out in the $39.00 neighbourhood, giving some support to CAD.

    Data wise, US NAHB has missed expectations in April, coming in at 58 vs. 59 forecasted. At his speech today, New York Fed W.Dudley advocated for a cautious adjustment in monetary policy while he expects consumer prices to reach the 2% target in the next few years.

    USD/CAD significant levels

    As of writing the pair is up 0.42% at 1.2870 and a breakout of 1.3024 (20-day sma) would open the door to 1.3219 (high Apr.5) and then 1.3298 (high MAr.24). On the flip side, the next support aligns at 1.2744 (2016 low Apr.13) followed by 1.2652 (low Jul.10 2015) and finally 1.2124 (monthly low Jun.24 2015).
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