USD/CAD sinks further ahead of CPI data

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

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Edinburgh) - The Canadian dollar is extending its upbeat tone vs. its American neighbour at the end of the week, dragging USD/CAD to fresh weekly lows in the mid-1.4200s so far.

    USD/CAD lower on risk, oil

    Today’s better sentiment surrounding the risk-associated space and a strong recovery of crude oil prices have helped CAD to reclaim some ground lost after reaching new cycle lows vs. the dollar in levels just shy of the 1.4700 handle.

    It will be an interesting session for the pair, as Canadian inflation figures and Retail Sales will be in the limelight along with Markit’s flash manufacturing PMI and Existing Home Sales in the US docket.

    USD/CAD significant levels

    As of writing the pair is losing 0.21% at 1.4248 and a break below 1.4176 (20-day sma) would aim for 1.3806 (3-month uptrend) and finally 1.3754 (55-day sma). On the other hand, the next resistance is located at 1.4692 (high Jan.20) followed by 1.4946 (high Apr.7 2003) and then 1.5000 (psychological handle).
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