USD/CAD turns negative near 1.4210

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 12, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Edinburgh) - The Canadian dollar has reverted its initial negative tone vs. its American neighbour on Tuesday, with USD/CAD now deflating to the 1.4215/10 band.

    USD/CAD retreats from cycle highs

    After hitting 13-year highs near 1.4270 in early trade, the pair has sparked a correction lower to the current 1.4210 area ahead of the NA session on Tuesday. Crude oil prices continue its rout today, with the barrel of West Texas Intermediate breaking below the $32.00 handle as of writing.

    A dovish tone from yesterday’s BoC Business Outlook Survey has left the door open for potential easing by the central bank in the coming periods, weighing on CAD and giving extra legs to the pair’s rally this morning.

    USD/CAD significant levels

    At the moment the pair is down 0.08% at 1.4211 and a breach of 1.3793 (low Dec.24) would open the door to 1.3684 (3-month uptrend) and then 1.3586 (55-day sma). On the flip side, the next resistance aligns at 1.4672 (high Apr.24 2003) followed by 1.4946 (high Apr.7 2003) and finally 1.5365 (high Jan.28 2003).
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