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USD/CAD turns lower, approaches 1.4500

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 20, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Córdoba) - The Canadian dollar has managed to recover some ground against the greenback, in tandem with oil prices that staged a mild recovery over the last hours.

    The Canadian dollar had a volatile session, torn between a less dovish than expected BoC statement and oil prices falling to fresh cycle lows.

    USD/CAD retreated from near 1.4700 and fell to a daily low of 1.4490 following the Bank of Canada decision to leave the cash rate unchanged at 0.5%, but the pair found firm support and bounced, rising back to the 1.4650 zone as oil prices hit fresh 13-year lows.

    However, the loonie has edged higher over the last hours amid better risk sentiment, dragging USD/CAD to the 1.4530 area, where it is currently trading, down 0.31% on the day.

    Since the start of 2016, USD/CAD has risen during 11 out of the 13 trading days, gaining more than 5% so far.

    USD/CAD levels to watch

    On the downside, next supports are seen at 1.4480 (23.6% Fibo retracement of 2016 rally 1.3811-1.4689) and 1.4353 (38.2% retracement of 2016 rally). On the upside, above 1.4700, next resistances could be found at 1.4951 (monthly high March 2003) and 1.5000 (psychological level) ahead of 1.5334 (monthly high February 2003).
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