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USD/CAD on a tear post Doha, bulls aim to re-take 1.30

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

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    USD/CAD is on a tear this morning in Asia, last exchanging hands at 1.2985 day highs, after Oil talks in Doha failed to reach an agreement to freeze production levels.

    USD/CAD threatens to re-take 1.30 as Doha talks fail

    The pair is just a whisker away from hitting the psychological 1.30 round number, a level not visited since April 11th. Just as in the case of Oil, the recovery in the Canadian Dollar vs its US counter-part has been driven, partly, by hopes that a compromise will be reached among OPEC and non-OPEC countries to freeze Oil production. Now that such an outcome in the near term remains illusive at best, the Canadian Dollar is likely to be under severe pressure this week.

    USD/CAD technical levels

    From a technical perspective, the spike in Asia has taken the rate at the doorstep of 1.30, a level that coincides with the Daily R3 area and that should act as a sticky resistance to at least see some sort of initial rejection/consolidation. Should/when the level breaks, 1.3020 is the next horizontal resistance ahead of 1.3065, a confluent level from April 8th sell-off origin and the day's ATR 14. On the downside, expect shallow retracements, with 1.2940/50 first focal point (broken Daily R2 reference) followed by 1.29 round number.
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