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USD/CAD ignores Canadian data, remains focused on Oil

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 22, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - The CAD traders turned a blind eye towards a mixed batch of Canadian data and pushed USD/CAD to a fresh session low of 1.4139 tracking the 5% rally in oil prices.

    Weekly loss on cards

    The sharp fall in oil today and the resulting drop in the USD/CAD mean the weekly loss is almost a done deal now. The oversold oil prices are witnessing correction and so is the oversold Canadian dollar.

    A better-than-expected Canada retail sales and a drop in the consumer price index is being ignored by the markets as of now. Ahead in the day, Oil prices could continue to guide the pair. The US data – manufacturing PMI and existing home sales may affect demand for the US dollars.

    USD/CAD Technical Levels

    The pair now trades around 1.4168. The immediate support is seen at 1.41 handle, under which the pair could drop to 1.3980 (38.2% of 1.2832-1.4690). On the other hand, a break above 1.4251 (23.6% of 1.2832-1.4690) could see the pair re-test 1.4378 (10-DMA).
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