USD/CAD deflates to 1.4050 ahead of ADP report

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

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Edinburgh) - The greenback is now retracing part of the earlier spike to the 1.4100 handle vs. its Canadian peer, with USD/CAD returning to the mid-1.4000s for the time being.

    USD/CAD capped around 1.4100

    CAD is now picking up pace following a recovery of the barrel of West Texas Intermediate to the vicinity of the critical $30.00 handle, allowing the pair to revisit the 1.4050 area after testing highs in the 1.4100 neighbourhood in early trade.

    While crude oil dynamics continue to drive the sentiment in the pair in the near term, today’s ADP report, the ISM Non manufacturing and EIA’s crude oil inventories will be in the limelight later in the NA session.

    USD/CAD significant levels

    As of writing the pair is up 0.16% at 1.4049 and a surpass of 1.4230 (20-day sma) would open the door to 1.4327 (high Jan.26) and then 1.4692 (high Jan.20). On the other hand, the immediate support lines up at 1.3890 (3-month uptrend) ahead of 1.3812 (low Jan.4) and finally 1.3553 (100-day sma).

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