USD/CAD drops to 1.3040 ahead of BoC

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 23, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Edinburgh) - The Canadian dollar is now picking up pace vs. its American counterpart on Friday, taking USD/CAD to the 1.3060 area after dropping to 1.3040.

    USD/CAD softer ahead of BoC

    The pair keeps alive the correction lower from weekly tops in the 1.3150/55 area posted yesterday, although sellers have so far failed to push it further than today’s troughs in the mid-1.3000s.

    Next of relevance will be the Canadian inflation figures during September, with prior surveys expecting headline consumer prices to have risen1.1% on a yearly basis. BoC’s Core prices – excluding energy and food costs – are seen at 2.1% YoY, matching August’s print.

    USD/CAD levels to consider

    As of writing, the pair is retreating 0.19% at 1.3064 with the next support at 1.3000 (psychological level) followed by 1.2960 (100-day sma) and then 1.2877 (6-month uptrend). On the other hand, a breakout of 1.3143 (50% Fibo of 1.3459-1.2827) would aim for 1.3162 (55-day sma) and then 1.3217 (38.2% Fibo of 1.3459-1.2827).
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