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USD/CAD erases daily gains as loonie recovers ground

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 7, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Córdoba) - USD/CAD pulled back from highs and erased intraday gains as the loonie recovered ground helped by a recovery in oil prices and better risk sentiment.

    After hitting a 12-year high of 1.4169 on Thursday, roughly matching its August 2003 high, USD/CAD changed course and dropped more than 100 pips over the last hours toward a daily low of 1.4049. At time of writing, USD/CAD is trading at 1.4075, little changed since opening, following three consecutive daily gains.

    The comeback of the loonie wasn't even tempered by BoC Poloz dovish tone nor disappointing domestic data, as the Ivey PMI for December came in at 49.9 versus 55.0 expected. However, USD/CAD remains well above 1.4000, at levels not seen since August 2003.

    USD/CAD levels to watch

    In terms of technical levels, immediate resistances could be found at 1.4171 (monthly high Aug 2003) and 1.4195 (monthly high Jul 2003). On the other hand, supports are seen at 1.3972 (Jan 6 low), 1.3908 (10-day SMA), 1.3858 (20-day SMA) and 1.3811 (Jan 4 low).
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