USD/CAD stalling below 1.4110 highs on dovish FOMC minutes

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 6, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Guatemala) - USD/CAD will consolidate at the highs now after the FOMC minutes were released and expressed caution in respect of hiking rates in the US economy.

    There were a number of key takeaways, the most relevant in respect of how close a call the Dec rate hike was. The conditions in the US economy are questionable as regards to whether hiking rates is suitable. USD/CAD has been a one way street for a score on the 1.41 handle while commodities in general are taking a hit, despite the concerns in the tensions in the Middle East. The price of Oil has continued to the downside marking fresh lows.

    USD/CAD levels

    Technically, the upside is still to play for and to target 1.4150 ahead of 1.4190 and 3rd Jul 2003 highs. However, RSI (14) on the daily is a touch off from over-bought readings at 68 and indicates a phase of consolidation before a further surge can happen. The 100 DMA at 1.3837 should offer strong support on a deeper downside move through S1 1.3918 support and below the pivot of 1.3969. 1.4000/50 needs to hold to attract further demand in the near term.
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